Selecting the best place to put your spare cash is an important decision and can depend on a number of factors including how much you’ll save, for how long and your attitude to risk.

Here are a few things to think about if you’ve got some spare cash and you want to save regularly:

1. What is saving and investing? Savings can mean regular payments into a bank or building society account. Investing is different from saving because it is designed for the longer term and usually involves different risks. Read ‘what is saving and investing’ to find out more.
2. Where can I save? Find out more about savings and regular savings products such as a savings account, ISA or Premium Bonds.
3. Do I have to sign up for the long term? There are a range of products designed for saving and investing over different periods of time, and again, each involves different risks and rewards. Usually, the longer you leave your money invested, the greater the potential return, but please remember the value of your investment can go down as well as up and you may not get back the original amount put in. Our investment calculator will help you to see how your money could grow.
4. Will I have to pay tax on my savings and investments? You'll generally have to pay tax on the interest or income you get from any savings and investments you have. However, there are certain savings and investment products that give you a more tax-efficient or even tax-free return. Individual Savings Accounts (ISAs) are favoured tax-efficient accounts which can be used to save cash, or invest in stocks and shares. There are limits on the amount you can invest into ISAs each year. National Savings and Investments (NS&I) also offer tax-efficient savings accounts, such as Cash ISA, Fixed Interest and Index Linked Savings Certificates and Children's Bonus Bonds. Premium Bonds are a way of investing whereby instead of paying interest on your investment you have a chance of winning tax-free prizes. Have a look into these products if you want to avoid paying tax on your savings and investments. Please note, tax rules may change in the future.
5. How do I begin? Contacting your bank, building society or researching online could be good places to start looking into your savings and investment options.

What next?
If you’d like to find out more about what to do, you can either follow the 'next' link at the bottom of the page, or if you prefer you can use the links and tools on the right.