The marketplace for financial products can feel overwhelming. Between savings accounts, ISAs, bonds, investments, current accounts, trading platforms and pensions, decision fatigue can soon set in.
At Kingdom Bank, we offer a simple range of products, so you can quickly decide which option is the best fit for you.
Option 1: Savings accounts
Savings accounts are a familiar choice for many. These accounts provide a safe place to save money whilst earning interest. Ensure that your provider is a member of the FSCS (Financial Services Compensation Scheme) which protects deposits up to £85,000.
One of the primary benefits of savings accounts is accessibility. They often offer easy access to funds, allowing for withdrawals and deposits whenever needed. For Christians, this can be advantageous for giving to charitable causes and emergency appeals at a moment’s notice.
However, easy access savings accounts often come with lower interest rates compared to notice period savings accounts. This means that while your money is safe and easily accessible, it may not grow as quickly over time. Additionally, the interest earned on savings accounts can be subject to taxation, which can reduce returns.
Option 2: ISAs (Individual Savings Accounts)
ISAs are another popular choice for savers, offering tax-free savings up to a certain limit set by the government each tax year (April-March). Within the ISA category, there are several types, including Cash ISAs, Stocks and Shares ISAs and Innovative Finance ISAs. Each type is unique, having its own potential benefits and drawbacks, as well as eligibility requirements, but they all share the advantage of tax efficiency.
For Christians seeking to maximise their savings while minimising tax liabilities, ISAs can be attractive. The tax-free status of ISA earnings aligns with principles of responsible stewardship, allowing individuals to keep more of their investment returns for themselves or charitable giving.
However, ISAs may come with certain restrictions, such as annual contribution limits and penalties for early withdrawal. Additionally, while some ISAs offer the potential for higher returns through investments in stocks, shares or alternative finance products, they also carry higher risks compared to traditional savings accounts.
Option 3: Bonds
Individual Savings Bonds provide a choice of fixed-term savings periods, making them ideal for those who will not need access to the funds immediately. If you are looking for predictable and fixed returns, a savings bond enables you to lock in a fixed rate over an agreed period of time.
Save with purpose
For Christians looking to invest their savings with purpose, Kingdom Bank offer a unique opportunity to make a tangible impact. When you open an account with Kingdom Bank, we’re able to lend to churches, charities and gospel workers so that their ministries can flourish and grow. Money saved with us is invested back into the Christian community, providing mortgages for churches. And, when you want your money back, you get it back, with interest!
Kingdom Bank does not provide financial advice. Please seek independent financial advice when structuring your finances.
