Tips for saving and investing

THINGS TO THINK ABOUT

Before you decide where to put your money, you should think about:

• How much money can you afford to save? Be careful not to commit yourself to a fixed pattern of savings unless you can keep up the payments.

• Make sure you can get at your money when you need it. Only tie your money up for a long time if you know you won't need it in a hurry.

• Think about the level of risk you are prepared to take with your money. You might be able to get a better return by taking on some risk - but you could lose money or make lower returns than you expect if your investments are not successful, especially if you might need to get at your money in the next few years.

• Consider spreading your money across a number of different types of product, especially if you are investing for the longer term. This can even out the risks - you are less likely to make very high returns, but also less likely to suffer large losses.

• Don't ignore the effects of inflation - try to put your money where the return is likely to beat inflation.

• Think about your tax position. Some products give you a tax-free return - with others, tax can reduce the return you get.

• Remember to shop around for a good deal . Information comparing the different products on offer is widely available - on BBC 2 Ceefax pages 250-259, on the internet (eg the FSA's comparative tables) and in newspapers and magazines.

And don't forget to review your savings from time to time to make sure they are still right for you.

GETTING HELP

If you would like some help sorting out your savings and investments, you could talk to an adviser.

Useful checklists and information

Getting information and advice

Handy tools

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Contact numbers and internet links

Financial Services Authority - Consumer Information
Information from the UK's financial services watchdog
Consumer helpline: 0845 606 1234 (call rates may vary)

Investment Management Association
Information for investors

Association of Investment Trust Companies
Guide to investment trusts

ABCUL Credit Unions
Local saving and lending with financial co-operatives

The BBC is not responsible for the content of external internet sites

This checklist was developed jointly by the BBC and the Financial Services Authority (FSA), the UK watchdog for the financial services industry. It does not provide financial or other professional advice. If you want advice specifically tailored to your personal circumstances you should consult an adviser.