Capital Ideas - Independent Financial Advisors
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Capital Ideas is a trading style of Financial Horizons Ltd which is authorised and regulated by the Financial Conduct Authority, FCA reference No 587075.  Registered in England, company No 07714109.  Registered office 77 Woodcrest Road Darlington DL3 8EE

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National Savings

National Savings are, in effect, investments with the British Government.  As such, they offer the very highest level of safety for your savings.

A wide range of savings plans is available, and some of these plans are tax-free.  These tax-free investment plans are particularly attractive for higher rate taxpayers.

The rate of interest generally is not high, in view of the high degree of security that National Savings offers.

Index linked National Savings certificates are a useful option if you think that inflation may be high in the future.  The value of the certificates at maturity is increased in line with inflation, and a small amount of interest is added on top of that.  The return is tax-free.

Premium bonds pay no interest.  Instead, you are entered into a regular draw where you stand a chance of winning a large prize, which would be tax-free.  You are in effect, gambling your interest, but you can get your original investment back in full at any time, at fairly short notice.

Bank Of England

Some National Savings accounts are an excellent place for money needed for the short term (under five years) and for an emergency fund.

The interest that you earn may be little more than the inflation rate, and if you choose unwisely may be less than inflation.  There is, therefore, the risk that the value of your savings held in National Savings accounts could be eroded by inflation as the years go by.

If you hold significant amounts in National Savings for lengthy periods, there is a significant risk that you will not do as well as if you had invested in investment plans that carried a degree of risk.

For help in choosing suitable savings and investments, contact us.