Savings
Savings are what we all aim to have throughout our lives. They act as a buffer in harsh times and reassurance in good times. On average we should all aim to have a minimum of 6 months of savings at any one time.
In addition to an emergency fund, we view savings as short to medium-term investments of, say, less than five years. They are also a low-risk home for your savings and can help reduce your overall risk if you hold other asset classes such as equity and property. You will have to bear in mind that, over the longer term, your money may lose its value because of inflation.
We are great believers in utilising all available allowances and the National Savings range presents yet another opportunity for individuals to maximise their net returns and provide a guaranteed hedge against inflation. As part of an overall planning process, using tax efficient, deposit based investments should always be considered.