So you want to make a lump sum investment but don’t know where to start?
I suspect you are not alone, particularly if you are new to saving and investing. With interest rates being low and set to remain so in the immediate future at least, making a lump sum investment into a savings account with a bank or building society isn’t what it used to be. Cash savings can of course provide instant access, interest and the security of knowing you will always get back at least what you have paid in. But don’t forget that inflation could reduce the value of the money you get back so it could be worth less than you have paid in, particularly given current low interest rates. So what other options are there?
One way you could make a lump sum investment is with an Investment ISA, also known as a stocks and shares ISA. It could be your next step if you already have cash savings, or even a Cash ISA as long as you remain within your £15,240 allowance. Our Investment ISA gives you the chance to make your money work harder than a cash account by giving it access to the long term growth potential of the stock market.
If this sounds like it could be for you, then Scottish Friendly’s My Prosperity (ISA) could give your money the chance to grow. Whilst you are giving your lump sum investment the opportunity to work harder, you also get peace of mind. With My Prosperity (ISA) provided you haven’t made any withdrawals, on the 10th anniversary of the start date of your investment, you are guaranteed to get back at least as much as you have invested. Although, as an investment, its value can fall as well as rise so please remember you could get back less than you have paid in other than on your 10 year anniversary. As with all tax efficient savings and investments, tax treatment depends on individual circumstances which could change in the future.
Other investment features
You also have the added option to make regular payments into a My Prosperity (ISA). It has a special feature called escalation, too which means that you can increase your premiums annually, if you want to, by a rate to suit you which could help boost your long term investment. I should also mention that payments start from just £10 a month so making regular payments and escalating them each year is affordable. There are other flexible payment options as well, for example, stop, restart, raise and lower the money you pay into this ISA at any time, online. So basically, everything you would expect to be able to do with your money from the comfort of your own home.
Scottish Friendly is a mutual and we’re proud of it. It means that we have no shareholders and instead work hard for the benefit of our customers. Scottish Friendly has been helping our customers to make lump sum investments since 1862, so why not see what we can do for you.