Investment returns aren't guaranteed. The value of your investment can go down as well as up and you may get back less than you paid in. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK also have an impact on tax treatment.

How to save money for the future

If you have a long term saving goal, it can be helpful to compare your options to see what’s best for you to reach it. Ideally you want an option that has all the features and support you need to hit your target, whether it’s five or 15 years away.

This quick guide is full of information that can help you compare different savings products to help you decide.

The difference between saving and investing

Saving and investing are different. For example, saving money could be when you put it into a bank account or Cash Individual Savings Account (ISA) to earn interest. There is less risk that the value of your savings will go down as it's not invested, but the real value of your savings (what you can buy with it) could be affected by inflation over time.

On the other hand, you can save money into a Stocks & Shares ISA where it’ll be invested in funds. Your money could then potentially grow over time, which could give you more in the long run if the investments perform well. If they don’t do well, you could end up with less than you put in.

There are pros and cons to both saving and investing. We have a full guide that can help you decide what’s best for you.

Read Savings and Investing guide

Ways to save money for the long-term

We offer a few options that can help you save and invest money for the future. They all work in different ways so it’s worth comparing them to see what could be right for you.

Stocks & Shares ISA

When you put money into a Stocks & Shares ISA, it’s invested in funds and other types of investments. It can be a tax efficient way of investing as you don’t pay tax on any returns you could make.

You do have to keep the ISA allowance in mind. It’s the limit on how much money you can save and invest through ISAs in a single tax year. The ISA allowance for the 2020/21 tax year is £20,000.

You can use our Personal Portfolio if you want to invest more than the ISA annual allowance. We explain how this option works below.

We also have a Stocks & Shares ISA guide that goes into even more detail. It’s useful if you feel this could be an option for you.

Read our ISA guide

Personal Portfolio

This option works like a Stocks & Shares ISA, but any returns you might make are taxable. If you've used up your ISA allowance or paid into another stocks and shares ISA this tax year, you can use a Personal Portfolio to make further investments.

Personal Portfolios let you invest in a wide range of funds. You choose from our range of thousands of funds. Or, you can pick a fund option for the level of investment risk you’re willing to take. Our Personal Portfolio page has more information on how it works, what the charges are and other useful details.

More about Personal Portfolio

Onshore and offshore bonds

There are different types of Bonds that could help you with your investment needs. They are often used to help give people a source of income after they retire, or to give them wealth they can pass on to their family. There are two options that you can compare below.

International Bond (offshore)

It can give you a chance to grow your money in the medium to long term and to give you an income. Find out how they work and if they’re right for you.

Get more details

Tailored Bond (onshore)

It can be used to save up money to take a regular retirement income or to pass on to loved ones. Read more information here. 

See this option

Savings and tax benefits

Most of the saving and investing options we’ve looked at have tax benefits. This is what makes them an efficient way of making your money grow over the longer term.

Our guide to tax-efficient savings and investments covers the benefits and rules you need to know.

Learn more about tax

More savings tips

Our MoneyPlus team of experts regularly post savings guides and insights to help you make the most of your money. Here’s a selection of some of the guides you might find useful on your savings journey.

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More helpful guides

Whether you’re saving money to retire or aiming to grow your money with investments, we have more guides that can help you make the best choices for you.