You can also buy investment and savings products from the public through the National Savings and Investment Executive Agency. However, one of the things that you should note is that products on offer change continuously, but the most recurring ones include Premium bonds, Income bonds, Guaranteed Equity Bonds, Direct Saver, Fixed Interest savings certificates and Children Bonds.
These are just some of the areas where you can choose to invest in and earn substantial cash within a given period. You can even get all your money back in case of no financial penalties!
INVESTING IN NATIONAL SAVING PLANS
Your investments and savings are backed up and secured by the HM Treasury. Remember that here, you’re just lending the government money to do specific projects. However, some investments don’t reward you as much as you would expect while others are quite profitable. There are also those who pay returns based on capital and income gains.
Guaranteed growth and income bonds pay returns by deducting your income tax, but you can reclaim this amount if you don’t pay a fee. Either way, it’s essential to always declare your income to HM Customs and Revenue as tax is something that keeps changing!
In any investment deal you plan to make, it’s good first to understand the risks involved. When it comes to making such investments, you should be on high alert. Most of our clients have come to us for advice on the reliability of national saving plans because they hardly made any profits. In most cases, this is because of unforeseen penalties that lead to the early encashment for a few investment products.
Similar to any cash-based product, if the level of inflation is slightly high, you might not get the full value of your money. In simpler terms, inflation decreases its ‘buying strength.’