Savings

The importance of making regular savings cannot be over emphasised. Whether for a cash reserve to help out in an emergency or for some future event such as a house purchase, school fees, weddings etc, each of us should have a ‘nest egg’ which can be called upon at any time should the need arise.

Bank and Building Society accounts have long been effective for use as a contingency fund, though some National Savings products, such as Premium Bonds, are also worthwhile if access can be gained at relatively short notice.

Saving, or investing, for some future event can take many forms though the shorter the term, the less risk that can be taken. Long term savings for children and grandchildren is often made monthly through products like Unit and Investment Trusts which offer a cost efficient method for long term capital growth.

Monthly savings can also help smooth out returns over the long term and can be worthwhile for the more cautious type of investor.