I'm looking to invest some money and I've been told to look into tax free savings. I'm in the UK, so what sort of options do I have available?

If you're in the UK like me then your main option is an ISA - Investment Savings Account.

These come in a couple of different types -

1. Savings only, with guaranteed interest rate
2. Stock market investment, with increased risks and benefits

Some banks will have a mix of both as well - the HSBC calls the first a Mini-ISA and the second a Maxi-ISA.

What you need to look at is how long you plan to invest for - investing in stocks and shares is more a long-term strategy, and it's worth mentioning that you'll probably get hit with management fees for this right at the start, which means you have to commit to the long-term as you're going to make a loss in the short-term.

Interest rates on Mini-ISA's are usually much better than savings accounts though.

Thank you for the reply. I think savings with a fixed interest rate sounds more attractive as I don't like risk.

A lot of banks offer these - I believe we're just into the new year for investing with them. Remember they are a mid-term investment plan, though, and you should be ideally looking to leave the money in one for about 5 years.

2c.

Are the ISA's just UK specific? I'd like to look into investing not only in the UK, but elsewhere. I like the idea of ISA's, but I"m wondering if they offer them in other places. I really don't mind the risk.

I think the ISA's are specific for UK citizens - but I'm sure there must be similar schemes in the USA.

Then again, the UK is a very heavily taxed country so maybe US members don't have the need for tax exemption on investments.

This is the way I feel, too. It takes too long to earn the money for a savings account to put all of it into a lot of risky investments. That said, I *do* think investments are great when one's saving's account isn't involved.

I always get confused when it comes to this kind of savings.
So thanks very much for the information im sure it will go to some use!