Low Risk Investment
You want guarantees
| Deposit Accounts | With Profits Savings Plans | |
| Available from | Banks, Building Societies, Credit Unions, An Post | Insurance Companies |
| Risk | Almost none | Almost none |
| Returns | Low returns | With profits products are designed to smooth out returns in the good and bad years, and are very consistent performers |
| Accessibility | Short notice | Accessible but early withdrawal often means a loss on your savings |
| Ideal Term | Any time period | At least 5 years to start seeing good returns. (Most are 10 year products) |
You cannot expect high performance returns from an instant access savings product. If you need to be sure that your savings will always be there for you, low returns is the price you pay.
Smart Money Tip
If you still have a mortgage you can pay if off faster. Increasing your payment by
£40 per month may save you thousands of pounds in interest over the remaining term of your loan.
You are saving yourself from being charged interest at a rate anywhere between 5% and 10% - which
is a better financial 'savings' than most returns you are likely to earn from deposit savings products