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Investing for beginners

Thinking about how to invest but don't know where to start? We're looking to make investing simpler, as you'll learn in our introduction to investing for beginners.

Important information - the value of investments can go down as well as up so you may not get back what you invest. Tax treatment depends on personal circumstances and all tax rules may change in the future. You can't normally access money in a SIPP until age 55. Withdrawals from a Junior ISA will not be possible until the child reaches age 18. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Every investor starts somewhere

If you’re new to the world of investing, it can feel like there’s a lot to learn. To get you on the right track, our investing for beginners section will introduce you to what investing's about and how to invest with us. We'll also touch on some FAQs.

Why should I invest?

People invest for all sorts of reasons, but one of the main reasons they invest is to make any spare money they might have work harder for them. 

Money sitting in a bank is secure, but low interest rates and inflation mean it's unlikely to amount to much over time. While money that’s invested has the chance to potentially grow (of course it could fall in value too, but that's the risk of investing). 

Watch some of our customers talking about why they decided to take the leap. 

Is investing right for me?

  • You should only invest if you're in a position to do so. If you're in debt, not making the most of your pension, or don't feel comfortable investing without taking financial advice, you may not be ready to invest just yet.
  • It's also a good idea to have some savings set aside before investing. If your circumstances change it can be tempting to dip into your investments. And yet it's time that gives them the best chance to grow (we recommend you stay invested for at least five years), as markets rise and fall.

How can I invest?

We'd like to make your experience as easy as possible. Here are two simple steps that show you how to invest your money with us.

Step 1: Choose an account

If you're ready to invest, the first thing you'll need to do is choose an account to hold your investments in. It’s important to pick one that’s right for you. So, you’ll need to think carefully about your personal situation and what you’re saving for.

  • Stocks and Shares ISA - A tax-efficient way to invest up to £20,000 per year.
  • SIPP (Self-Invested Personal Pension) - A flexible way to save for retirement with significant tax benefits.
  • Junior accounts - Invest for your child's future with a Junior ISA or Junior SIPP.
  • Investment Account - For anyone who’s already used up their yearly tax allowances, there’s our investment account. This has no limits on how much you can invest.
See which of our accounts is right for you
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Step 2: Decide how to invest

Once you know what account you need, it's time to think about what you want to invest in. We have over 3,000 investments to choose from, including funds, shares, investment trusts and ETFs. 

  • What is a share? If you buy a share, you buy a part of a company (that has a variable number of units to sell)    
  • What is a fund? A fund is made up of a number of companies' shares, so you get to invest in many companies at once. 
  • What is an ETF (exchange-traded fund)? Exchange-traded funds contain a mix of shares or bonds that track a market, like the FTSE 100. They typically have lower costs than funds.
  • What are investment trusts? Investment trusts are similar to funds, except you buy and sell these on the stock exchange.

You can either select your investments yourself. Or, if this feels a bit daunting to begin with, take a look at the below. 

Let's help you get started

These three simple options will help you open an account and start investing.

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Easy Invest

A simple, low-cost fund

One fund holding shares from some of the world’s biggest companies. Available only for an ISA.

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Fidelity Select 50 Balanced Fund

Our experts’ favourite funds in one investment

A fund that brings our experts' favourite funds together in one investment. Available for all accounts.

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Navigator

Show me a few ideas

We’ll give you a few fund options, based on what’s important to you. Available for all accounts.

If you would like to see everything we offer, you can use our powerful Investment Finder tool to search and filter the thousands of investments on offer.  Search for investments

Important information: These guidance tools are not a personal recommendation in respect of a particular investment. If you need additional help, please speak to an authorised financial adviser.  You should regularly reassess the suitability of your investments to ensure they continue to meet your attitude to risk and investment goals.

FAQs

What is inflation?
What is an investment?
What can I invest money in?
What is the FTSE 100?
What is the stock market and how does it work?