The Different Individual Savings Account Investments

2008-01-29 10:55:21

( Health )



An individual savings account is a financial product designed for the purpose of personal investment and savings. An individual savings account scheme provides different ways of savings and investments. It is there to encourage people to plan for their financial future or use them as an individual retirement account. A depositor can put the money for short-term savings or for long-term investments.

Individual savings accounts are categorically separated. They are called individual savings account components. One is a cash component; it is a cash deposit that is similar to an ordinary savings account. It is most suitable for short-term investment so you can get at your money easily. Another is stocks and shares component; it may be more appropriate for a longer term investment, however, its value may fluctuate from time to time and has no guarantee that it will be profitable. The third component is life insurance component. It is also most suitable as a long term investment; it is an individual coverage of life insurance.

Before investing in individual savings accounts, study carefully the restrictions of this investment and know which investment is most suitable for you. For most savers, the cash component has been the most beneficial. Anyone who is 18 years or older and has a small savings can be eligible to open an individual savings account. Determine what type of individual savings account you want to invest in; a Maxi ISA or a Mini ISA. A maxi ISA allows you to use a combination of individual savings account components. A mini ISA allows you to save your money in a cash component or save it in stocks and shares components.

Any investor or depositor who plans on investing their money on individual savings account must look for authorized ISA firms. Using authorized ISA firms means you will have access to the available complaint procedure and compensations an individual savings account may have.


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