This at-a-glance guide is designed to give you a quick snapshot of a range of different investment vehicles available.

It is important to note that the value of investments and income from them may go down. You may not get back the original amount invested and the levels, basis and reliefs of taxation are subject to change. This is not intended as an exhaustive guide.

Deposits may be held in:

  • Commercial banks
  • Building societies
  • ISAs


National Savings and Investments have a number of different instruments*:

  • Fixed Interest Savings Certificates
  • Children’s Bonus Bonds
  • Fixed Rate Savings Bond
  • Income Bonds
  • Investment account

Asset-backed investments can be held in:

  • Shares
    • Issued by companies to raise money
    • Dividends related to profitability
    • Potential Capital Gains Tax on realised gains when shares sold
       
  • Gilt-edged Securities
    • Government guaranteed
    • Fixed rate of interest or coupon
    • Interest liable for tax
    • Full nominal value repaid at redemption date
    • Some Gilts index linked
    • No Capital Gains Tax on Gilts
       
  • Unit trusts
    • Investors’ money pooled to form large funds
    • Medium to long-term investments in stocks and shares
    • Broad spread for greater security
    • Professional fund management
    • Units priced on the basis of the value of the underlying investments
    • Income distributed or re-invested
    • Income liable for tax
    • Potential for Capital Gains Tax
       
  • Cash ISA
    The overall limit for a Cash ISA is now £15,240 with the ability to transfer Stocks and Shares ISAs into a Cash ISA and vice versa.
     
  • Stocks and Shares ISA
    With a Stocks and Shares ISA you can invest the full £15,240 per year, The Stocks and Shares ISA must include a stocks and shares element. As with Cash ISAs from the 1st July 2014 the overall limit at which you can invest in a Stocks and Shares ISA has been raised to £15,240 per year.

    Investors do not pay any personal tax on income or gains, but ISAs do pay tax on income from stocks and shares within the funds.
     
  • Tessa Only ISA
    Anyone who held Tessas will have previously converted these to TOISAs, these are no longer available and have been replaced by ISAs.
     
  • Investment trusts
    • Pooled investments run by limited companies
    • Medium to long-term investments
    • Professionally managed
    • Income and gains liable to tax
    • Stock market determines the price so shares can trade at a discount or a premium to the underlying asset value
    • The funds are 'closed-ended'
       
  • Open ended investment companies (OEICs)
    • Pooled investments run by limited companies
    • Medium to long term investments
    • Professionally managed
    • Income and gains liable to tax
    • Single pricing based on the net asset value
    • Charges expressed separately
    • The funds are 'open-ended' 
       
  • Investment bonds
    • Single premium (i.e. lump sum investment)
    • Non qualifying life assurance policy
    • Medium to long-term investments
    • With profit or unit-linked
    • Withdrawals possible
    • No personal liability for basic rate Income Tax or Capital Gains Tax
    • Withdrawals may trigger a liability to higher rates of tax or the loss of age allowance for the over 65s
       

*These products and services are not regulated by the Financial Conduct Authority (FCA).





Equity based investments do not afford the same capital security as a deposit account.

The levels, bases and reliefs from taxation are subject to the individual circumstances of the investor and may be subject to change.