How To Save of Invest Your Money

There are many ways a person can start saving money, but it is always best to know what is available to you. First you have banks and building society savings accounts that will offer you a safe way to invest your money. You will set up savings accounts with the banks and building societies so that you are earning interest on the amount of the money you have in the account. The more savings you have the more interest you will earn. You will also find that you get the entire lump sum back plus interest when you close the account. There are several banks and building savings accounts to choose from and the best one to choose is the higher interest rate. You also need to understand the minimum amount of money required to keep the account open and the type of interest it will pay.

The Financial Service Authority or FSA is going to regulate how the banks and building societies can work in order to protect you and your money. Here are a few ideas for savings accounts. You have the mini cash ISA or Individual Savings Account. This account is going to be a tax free savings and investment account. It will only contain cash; therefore there is no risk to your money. You will find that you can earn about £3000 in one year. You must be a resident of the UK over of 18 to start an account.

You also have the National Savings and Investments. This is where you have a savings account, but you are also investing. You are typically investing in products backed by the government. As a result your money is going to be secure. It is also a tax free product that includes premium bonds. You will find there is definitely a return on the investment and there is also monthly income products associated with these types of accounts.

Credit Unions are another way to save financially. You will find that the financial organisations are owned and run by their members for members. You are able to save money with credit unions, and they will also lend money as long as you have established yourself as a saver. You do have to be a member of the credit union in order to open an account.

There are other ways of saving, such as the investment products. You will find that purchasing shares in a company or owning a company with a few shares is one way to get a little return on your saved money. There are risks involved in investments, such as the stock market fluctuation that could cause your investment shares to decrease rather than increase. You will still be earning dividends through the owning of the stock.

There are pooled or collective investments as well. This is where a small contribution from a variety of people makes up a single investment fund. This fund can be dispersed to several shares in companies.

Back To January 2008 Financial News
Purchasing with Credit Cards
Traps with Credit Cards
Understanding Credit Scoring
What Is A Credit Reference Agency
Testing Your Debt
10 Ways To Save Money
Benefits of Savings
How To Save of Invest Your Money
Individual Savings Accounts