Savings and Investments

What you'll learn

What you'll learn

  • The different types of saving and investment products that you can invest in with Scottish Widows and their features and benefits.

What's an OEIC?

What's an OEIC?

An open-ended investment company (OEIC) is a type of fund which gives you access to investments. It may invest in one type of investment, like shares in a company, or several different types of investment.

When you open an OEIC, you decide if you want to focus on investment growth - any growth is reinvested back into the fund - or a regular income - where you receive payments from your OEIC. You can do both by choosing different funds, and you can change this at any time. 

 

 

 

A fund gives you access to various investments, company shares and other types of investments, like bonds and property, which are selected and managed for you by a fund manager.

What's an ISA?

What's an ISA?

An Individual Savings Account (ISA) is a popular way to save or invest. You can save in a cash ISA or invest using a stocks and shares ISA. 

With a cash ISA

  • you get either a fixed or variable rate of interest
  • you don’t pay tax on the interest you make 
  • you can only pay into one cash ISA each tax year.

With a stocks and shares ISA

  • you don’t pay tax on any investment growth
  • you’ll invest in funds.  You can select the funds but the investment types in each fund are selected by a fund manager
  • you can select investment growth - where any growth is reinvested back into the funds - or a regular income - where you receive payments from your ISA, or do both by choosing different funds
  • you can only pay into one stocks and shares ISA each tax year.

A stocks and shares ISA’s value, and any income from it, isn’t guaranteed, because the value of it can go down as well as up. 

In a nutshell: 

  • you can pay into one cash ISA and one stocks and shares ISA in a tax year
  • the total amount you can pay into your ISAs in any tax year is subject to the annual ISA allowance set by the Government (HM Treasury)
  • any unused allowance can’t be used in the next tax year
  • ISAs can be transferred to other ISA managers.
     

What's an Investment Bond?

What's an Investment Bond?

An investment bond is another way to invest. It has additional benefits such as life assurance. So, if you die your beneficiaries will receive the value of the investment back. 

It shouldn’t be confused with other investments that have ‘bond’ in their name, such as corporate bonds or government bonds, which are completely different. 

With an investment bond: 

  • You invest in one or more funds. It’s recommended you invest over the medium to long term - at least five to 10 years.
  • You can receive a regular income.
  • Some have a guarantee. This means, the investment bond will pay out at least the original amount you invested either when you die, withdraw your investment, or if your bond reaches the end of any fixed investment period it may have. Exit charges may apply.
  • There are different ways you can take money, which will affect the amount of tax you may pay. Tax treatment depends on your individual circumstances, which may change. Tax rules may also change. Before taking any income, it’s recommended you get advice. A financial adviser will normally charge for any advice given.

This guide (PDF, 127KB) will help you understand the way investment bonds are set up and the different ways you can take your money and what the tax implications are.

A beneficiary is: anyone you choose to leave your money to

What next?

We hope this information has helped, if you want to understand more go back to learn more about investing.

Are you ready?

If you think you’re ready or are investing with us, go to:

What you can do