My first post - savings scheme which pays out..what are they?

bubbles_powerpuffgirl

Hi there,

New to this.....so here goes!!

My parents always used to have these savings things where they would pay money in each month and then after about 5 years it would pay out and they would by a car or something. They seemed to make money on it and kept using this phrase of...'when this policy matures..' etc...

What were they on about and do they have a name??

I would like to get one but i dont think its an ISA.....any ideas would be gratefully received!!

Caz

earlgrey_3

If it was a few years ago they might have been endowment policies with premiums collected by one of the insurance men who came round door to door once a week or once a month - what the industry called 'Industrial Branch' insurance. Were very popular but terrible value.

Should be a lot of better bets now depending on whether you want simple savings or something linked to the markets.

bubbles_powerpuffgirl

cool thanks.....so the equivilent now would be an ISA of some sort i would guess???? (just found this site this morning....fantastic place!!)

earlgrey_3

Well, a cash ISA is always the best place to put your first £3600 each year, the maximum the tax man allows, because you get all the lovely interest without paying tax on it. But all the different ISA accounts work in different ways. Some pay a fixed interest rate, some allow instant access, some require notice. This site lists most of the best bets: http://www.moneyfacts.co.uk/savings/bestbuys/default.aspx