All-In-One Accounts and Offset Mortgages
Accounts such as these can be used to offset the asset of a deposit account against the liability of a mortgage and only charge the borrower interest on the difference. These accounts offer a high degree of flexibility, but the ultimate decision must rest with the various interest rates available on an all-in-one account against conventional mortgages and deposit accounts.
Some investors prefer to buy alternative investments such as antiques, pictures, wine and classic cars. For those with knowledge and expertise in their chosen area, this can be very lucrative. However, history has shown that alternative investments are not without risk. Novices can have their fingers burned unless they seek expert advice.
Conventional wisdom says that it is unwise to place all one's eggs in the same basket. The process of asset allocation ensures that an investment portfolio holds elements, such as equities, gilts, property, bonds, etc. to protect against the significant reduction in value of any asset class. Smaller investors will not have sufficient funds for full asset allocation. Hence, they may be better advised to invest in collective schemes, such as unit or investment trusts, or funds offering lower risk, such as life company investment bonds. See Guaranteed Equity, Income and Growth Bonds
Bond or Term Savings Account
Some investment products require you to tie up your money for a set Term to qualify for (usually) enhanced benefits. For instance, Equity Bonds, Income and Growth Bonds issued generally by life assurance companies have a maturity date of normally 5 or 7 years. Some building Society accounts require the money to remain untouched for extended periods. You should only invest money that you do not require in a hurry in such products.