Savings and investments

As people living with HIV are excluded from most protection products it makes sense to try to build up savings to fall back on.

There are several different types of savings accounts to choose from including regular savings accounts, ISAs (individual savings accounts) and instant access accounts.

Regular savings accounts pay more interest than standard accounts but come with certain terms and conditions. Firstly there will be a limit on how much can be saved each month, typically £250. Secondly, there will probably be restrictions on how many withdrawals can be made without losing interest.

Anyone can save up to £11,280 in an ISA each tax year, with a maximum of £5640 in a cash ISA (rising to £11,520 overall and £5760 for the cash element for the year 2013/14). The interest or gains earned on an ISA are paid tax-free. It’s a good idea to shop around for the best deal. Some ISAs allow balances built up in previous years to be transferred in, while others are only open to new money.

Instant access savings accounts offer just that – instant access to the money in the account. The best rates tend to be found online and it’s usually possible to check account statements and transfer money to and from accounts on the internet. Comparison websites such as www.moneysupermarket.com or www.moneyfacts.co.uk can help in finding the best deal.

National Savings & Investments (NS&I) offers a range of savings products backed by the government including tax-free investments, easy access savings accounts, premium bonds and ISAs. These products are a safe haven in turbulent times in the banking sector as the capital is 100% secure. When saving money with other institutions there is a Financial Services Compensation Scheme (FSCS) limit of £85,000 per person, per institution, in the event of the company going bust.

If someone wants to invest in the stock market there are various ways of doing so. It all depends on individual attitude to risk and what someone is trying to achieve with their investments. It’s a good idea to take professional advice before investing in stocks and shares.