Regular Savings Plans
Who offers regular savings plans?
Nearly all investment providers offer regular savings plans that allow regular investing month by month. But it is worth making sure that you understand the terms and conditions of the plans you are considering, as they can be costly, with complicated fees and charges that can devour your potential returns.
Regular savings plans can be encompassed within Individual Savings Accounts (ISAs) and personal pensions, as well as self-invested personal pensions (SIPPs). In ISAs, all capital gains are free from tax and there is no further tax to pay on income, even for higher-rate taxpayers, although the tax credit on dividend payments cannot be reclaimed.
A SIPP offers many of the same benefits, but you are also granted tax relief at your marginal or highest rate of tax on your contributions, making regular saving particularly attractive. But do remember that regular saving under a pension umbrella will lock up your savings until you come to take the pension.
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