ISAs (Individual Savings Accounts) - The latest tax-free investment vehicle. Covering the whole range of the risk spectrum. All returns are tax-free. For further information and access to ISA products, visit the 'ISA' page.
TESSAs (Tax Exempt Special Savings Accounts) - No new TESSA accounts can be opened. You can transfer the capital (but not the interest) from expiring TESSAs into some ISA accounts called TESSA-only ISAs (TOISAs). This is on top of your annual ISA investment allowances. Click on 'ISA' for information and access to TOISA products.
PEPs (Personal Equity Plans) - No new PEP accounts can be opened. Existing PEPs may be maintained and can continue to benefit from tax-free returns. PEP funds can still be switched to a new manager. For further information about PEPs and access to our preferred PEP funds, visit the PEP page.
Pension savings - Pension plan saving is very tax efficient. Contributions into a pension plan are tax deductible against income and the pension fund's profits and gains are virtually tax-free. However, these tax benefits should be balanced against the lack of access to the funds invested. Generally, funds can only be accessed on retirement. Click here.
Friendly Society products - Suitable for small regular but long term savings (up to £25 per month or £270 annually in 2002/3). Growth on your savings is tax-free as long as the savings are held with the Friendly Society for a minimum of 10 years.
National Savings ordinary account - Suitable for regular or lump sum investments and is a safe investment. The first £70 of interest in 2002/3 is tax-free. For further information contact www.nationalsavings.co.uk
National Savings certificates - Fixed term loans to the Government. Suitable for regular and lump sum investments. Fixed rate and indexed linked products are available. Interest is not paid until the end of the term but is tax-free. For further information contact www.nationalsavings.co.uk
'Gilts' or 'Gilt-edged securities' are loans made to the British Government. They are considered a very safe investment if held to maturity (i.e. until the Government repays the loan). Most carry interest at a fixed rate so may be suitable if you think interest rates will fall. There are others linked to indices such as the retail price index (the 'RPI') which provide protection against inflation. The amount you will receive on sale will vary depending upon the relationship between market interest rates and the fixed rate attached to the Gilt and the time to maturity. Gains on sale are tax-free. If you wish to purchase Gilts, contact your bank or stockbroker or register with the Bank of England at www.bankofengland.co.uk/registrars/brokeragehome.htm. Some Gilts can also be purchased at the National Stock Register at the Post Office.
