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:

• Index Linked Certificates
• 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 £5,100 each year which will form part of your overall limit of £10,200 per year.
   
• Stocks and Shares ISA
  With a Stocks and Shares ISA you can invest the full £10,200 per year including the £5,100 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  Anyone who held Tessas will have previously converted these to TOISAs, these are no longer available and have been replaced by ISAs.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