Archived article: This article was correct at the time of publishing. Tax, investments and pension rules can change over time so the information below may not be current.

Regular savings – take the effort out of investing

This year you can pay £20,000 into an ISA and make pension contributions of up to £40,000. If you don't have a big lump sum to invest, regular investing is an effortless but effective way to make the most of your allowances and their many tax benefits.

Lee Dooley Lee Dooley
28 April 2017
Purple alarm clock

How does it work?

You simply set up a regular cash deposit or investment into a fund that occurs automatically every month. The money comes out of your bank account on the same day each month and you can switch from cash to investments (or vice versa) at any time.

Getting into the savings habit easily

Many people know they should be saving money but struggle to find the time or motivation to make deposits every four weeks. Regular saving is an effortless way to get into the savings habit. Once you've set it up there's nothing else to do unless you want to change your monthly amount of choose a different investment fund.

Small amounts can make a big difference

You don't need to invest an arm and a leg each month to see the benefits of regular saving. Even small amounts can grow substantially over time through compounding – the snowballing effect of your returns generating more returns. With Bestinvest you can set up regular savings from just £50 a month.

With Bestinvest you can set up regular savings from just £50 a month.

Take the emotion (and worry) out of investing

Emotions can cloud the judgment of even the most experienced investors – but it's not easy to simply switch them off. Regular investments aren't affected by short-term market noise, panic selling or the latest news headlines. And you won't be worrying about how much you're investing or where to put your money either.

No timing the market

Regular investing removes the urge to try to time the market and the worry over whether or not now is the right time to buy. Many different forces affect the value of investments and it is notoriously difficult to accurately predict short-term market movements.

With regular investing you buy more when prices are low and less when they rise. This is known as pound cost averaging. It doesn't necessarily create bigger profits (or losses) but it will help to smooth out returns and reduce volatility.

Regular saving with Bestinvest

To set up regular savings you will first need to open an account or log in. You can then select your account and click the 'Monthly savings' tab at the top of the screen (or call us on 020 7189 9999). You'll be able to choose how much to save each month and select either a fund or cash deposit.

If you have any questions or need some help setting up regular savings, simply call us on 020 7189 9999 or email best@bestinvest.co.uk.