Individual Savings Accounts (ISAs) are tax advantaged investment accounts. ISAs can invested in a wide range of different things including investment funds, shares, bonds or cash.  There is no tax to pay in a ISA and no tax to pay when money is taken out.

Junior Individual Savings Accounts (JISAs) are similar to regular ISAs but are specifically for those under 18. As with ISAs, a Junior ISA can invested in a wide range of different things including investment funds, shares, bonds or cash.  There is no tax to pay in a Junior ISA. Parents or other family members can pay into a Junior ISA for a child who is then entitled to the money on their 18th birthday. Alternatively, they can keep their funds invested to spend throughout their life.

Lifetime ISAs are available to those under 40 and can be a great way to save and invest. Up to £4,000 a year can be contributed with the government putting in upto an additional £1,000 a year as long as the funds are used to purchase your first home or to fund your retirement (after age 60). Lifetime ISAs can be a great way to save tax-efficiently while retaining access to your money should you need it earlier.

This is a standard investment account that is liable to tax on any interest or growth. The main advantage of a General Investment Account is that there are no limits to what can be invested or withdrawn at any time. A General Investment Account can be invested in almost any form of asset such as company shares, property funds, bonds, managed funds or cash. It is often better to maximise investment into other tax-advantaged products (such as NISAs and pensions) before investing in a General Investment Account. However, this type of product can be useful where large sums need to be invested.

Investment bonds are designed for lump sum investments.  The tax treatment of an Investment Bond allows for some tax-deferred withdrawals each year so this can be a great option for those looking to draw an income from a lump sum. Investment bonds are often used within trusts for tax planning purposes. As with many other products, an Investment Bond can invest in a wide range of assets including investment funds, shares, bonds or cash.

An Offshore Investment Bond is similar to a regular Offshore Investment Bond but the product will be based outside of the UK (often in  Ireland, Luxembourg, the Channel Islands or the Isle of Man). The main difference with an Offshore Investment Bond is that much of the tax payable on gains made within the bond is deferred until it is taken. This can be advantageous when an investor’s tax position is likely to change during the term of the policy.

A savings account is a type of bank account primarily designed for longer term savings. These may be ‘instant access’ or may require a short period before withdrawals can be made. Savings accounts usually provide a higher rate of interest than current accounts and can be used for saving a lump sums and/or regular savings. Many people use savings accounts to provide themselves with an ’emergency fund’ that can be used if needed and to provide safe and secure longer term savings. Typically, the interest rates available on most savings accounts are significantly lower than could be achieved by investing money in other things, so significant sums left in savings accounts for the long-term may be better off being invested.

National Savings & Investments (NS&I) is owned by the UK Government and offers a range of savings and investment products. A key benefit of NS&I is the security of capital offered by the government backing of the organisation. Some products are tax-advantages, some not. Some are aimed specifically at children to encourage long-term saving. Some products like the Pensioner Bonds have annual investment limits. NS&I products can provide useful savings vehicles and provide long-term capital security although higher returns can usually be found elsewhere by investing in a broadly diversified investment portfolio.