This is an at-a-glance guide intended to give you a quick snapshot of all the different investment vehicles, with more detailed information being contained in the other documents on investments.

Deposits may be held in:

• Commercial banks
• Building societies
• ISAs

National Savings have a number of different instruments:

• Fixed Interest Savings Certificates
• Children’s Bonus Bonds
• Fixed Rate Savings Bond
• Income Bonds
• Investment account

Asset-backed investments can be held in:

• Shares
  • Issued by companies to raise money
  • Dividends related to profitability
  • Potential Capital Gains Tax on realised gains when shares sold
     
• Gilt-edged Securities
  • Government guaranteed
  • Fixed rate of interest or coupon
  • Interest liable for tax
  • Full nominal value repaid at redemption date
  • Some Gilts index linked
  • No Capital Gains Tax on Gilts
     
• Unit trusts
  • Investors’ money pooled to form large funds
  • Medium to long-term investments in stocks and shares
  • Broad spread for greater security
  • Professional fund management
  • Units priced on the basis of the value of the underlying investments
  • Income distributed or re-invested
  • Income liable for tax
  • Potential for Capital Gains Tax
     
• Cash ISA
  You can have one cash ISA up to the limit of £5,760 each year which will form part of your overall limit of £11,520 per year.
   
• Stocks and Shares ISA
  With a Stocks and Shares ISA you can invest the full £11,520 per year including the £5,640 in cash ISAs. The Stocks and Shares ISA must include a stocks and shares element.
   
• Tessa Only ISA
  Anyone who held Tessas will have previously converted these to TOISAs, these are no longer available and have been replaced by ISAs.
   
• Investment trusts
  • Pooled investments run by limited companies
  • Medium to long-term investments
  • Professionally managed
  • Income and gains liable to tax
  • Stock market determines the price so shares can trade at a discount or a premium to the underlying asset value
  • Can trade at a discount or a premium
  • The funds are 'closed-ended'
     
• Open ended investment companies (OEICs)
  • Pooled investments run by limited companies
  • Medium to long term investments
  • Professionally managed
  • Income and gains liable to tax
  • Single pricing based on the net asset value
  • Charges expressed separately
  • The funds are 'open-ended' 
     
• Investment bonds
  • Single premium (i.e. lump sum investment)
  • Non qualifying life assurance policy
  • Medium to long-term investments
  • With profit or unit-linked
  • Withdrawals possible
  • No personal liability for basic rate Income Tax or Capital Gains Tax
  • Withdrawals may trigger a liability to higher rates of tax or the loss of age allowance for the over 65's
     

The Financial Conduct Authority (FCA) does not regulate Deposit Accounts and National Savings

In relation to Asset Backed Investments the value of your investment may fall as well as rise and you may not get back the original amount invested.