Important information
Tax treatment depends on your individual circumstances and may be subject to future change.
Your capital is at risk. All investments carry a degree of risk and it is important you understand the nature of these. The value of your investments can go down as well as up and you may get back less than you put in.
Wealthify offers both a high-interest, instant access savings account and an affordable investing platform. So how do these accounts work?
Saving and investing are two ways to grow your money for the future. However, both these methods differ in risk, potential growth, and accessibility features.
Wealthify is one provider which accommodates for both savings and investing, offering an instant access savings account with a competitive rate and an easy-to-use investment platform.
Below we explain how saving and investing works, and how you could start growing your money with Wealthify.
Read more: What kind of investment strategy could a new investor consider?
How does saving work?
When saving your money, you’ll earn interest on your balance.
This rate is either fixed, meaning it won’t change over a specific term, or variable, where it can change at your provider’s discretion.
When you begin comparing different savings accounts, you’ll notice providers will list their interest as an Annual Equivalent Rate (AER). This is the interest you’ll earn over the course of a year as a percentage of your balance.
Ultimately, a savings account provides a degree of certainty. You know your balance won’t fluctuate in value and you’ll earn an interest payment periodically.
But, if your savings aren’t beating inflation, which is a measurement of how prices rise over time, then your purchasing power will fall. In other words, despite earning interest your savings will buy you less over time.
Read more: How mobile apps are transforming accessibility for UK investors
Start getting more from your savings with Wealthify
Wealthify, which is backed by Aviva, is offering its Instant Access Savings Account at 4.65% AER/ 4.55% gross p.a (variable). Interest is paid monthly and deposits start at a single pound.
Rate correct as at 5 August 2024. This account is powered by ClearBank. Financial Services Compensation Scheme protection applies to eligible deposits
Wealthify’s Instant Access Savings Account
Wealthify’s Instant Access Savings Account currently offers a variable rate. To see how much this could earn you each year, use Wealthify’s savings calculator.
Deposits start at £1, there’s no upper limit to the amount you can save, and interest is paid monthly.
One of the account’s perks is that your money is easily accessible. So, in the event you need immediate access to your cash you can withdraw as much of your balance as you wish.
The account is powered by ClearBank, who are authorised and regulated by the Financial Conduct Authority (FCA). Money held in your Wealthify Instant Access Savings Account is eligible for Financial Services Compensation Scheme (FSCS) protection, provided you meet the FSCS eligibility criteria, and is subject to a limit of £85,000 per customer, per bank.
For more information about FSCS protection visit: FAQs | Wealthify.com
How does investing work?
Investing is the process of strategically buying something with the hope that it’ll increase in value. When the time is right, you’ll then sell this asset for a profit.
Unlike earning a guaranteed fixed or variable return from a savings account, the returns from your investments are always unknown. It could outperform the best savings rates and inflation, but it could also leave you with less than your original investment.
Investing your money is usually for long-term financial goals. This is because over the short-term your money is especially vulnerable to market fluctuations. By this, we mean that if your investments fall in value there is less time for it to recoup your losses.
By contrast, keeping your money invested over a longer term allows your investments to “ride out” these fluctuations and make an overall profit. That’s why some choose to leave their investments untouched for at least five years.
Read more: How Isas can give tax-free savings – or a brilliant introduction to investing
No management fees for 12 months with Wealthify
If you’re thinking about investing, then now could be a good time to do so with Wealthify: your easy-to-use, online saving and investing service. As a Times Money Mentor reader, Wealthify are offering zero management fees (usually 0.6%) for new customers who open any one of their investment products, including Isas, Junior Isas, Pensions and General Investment Accounts. To be eligible, you’ll need to use the link below.
T&Cs apply. Capital at risk. The tax treatment of your investment will depend on your individual circumstances and may change in the future. Wealthify is authorised and regulated by the Financial Conduct Authority.
Investing with Wealthify
Investing your money doesn’t have to be a complicated process. With Wealthify, you can choose one of its ready-made portfolios and its investing team will manage the rest.
Upon sign up you’ll need to create a plan by choosing your investment style and how much you want to invest.
There are five levels to choose from depending on your appetite for risk. The cautious profile is the most risk-averse while the adventurous profile takes on the most risk.
Whatever your portfolio, Wealthify’s expert investment team will diversify your money across a range of assets – from stocks to bonds.
There’s also the option to keep your investments ethical, which restricts your portfolio to funds which are signatories of the Principles of Responsible Investing (PRI). This could make it a great option if you’re looking to fund companies making a positive impact on society. More about how it chooses its funds can be found on its website.
As for fees, Wealthify is running a promotion for new customers opening an investment plan. For the first 12 months of your membership you can enjoy zero Wealthify management fees – meaning you only need to pay the investment costs of your portfolio.
You can find out more about this offer by visiting Wealthify’s website here.
Beware, because other charges may apply, such as exit fees from your old provider. Terms and conditions apply if you’re looking to take advantage of the offer, and with investing your capital is at risk.
Once this promotion comes to an end, you’ll then incur Wealthify’s annual management charge. To keep things simple, it currently costs 0.6% per annum – regardless of your portfolio’s make-up. Then, if you’ve invested in one of its original plans you can expect added expenses to amount to 0.16% per year. For ethical plans this increases to 0.7% annually.
Below we illustrate how much this could cost:
| Deposit | Plan (Based on confident plan) | Wealthify fee (p.a) | Average investment costs (p.a) | Annual estimate |
| £5,000 | Original | 0.6% | 0.16% | £38 |
| £5,000 | Ethical | 0.6% | 0.7% | £65 |
| £20,000 | Original | 0.6% | 0.16% | £152 |
| £20,000 | Ethical | 0.6% | 0.7% | £260 |
These figures are intended as a guide. Fees are charged as a percentage of the total value of your Plans, and so the amount you pay will vary depending on the value of your investments across the month. Fees are quoted annually but charged monthly.
But, without the annual management charge for the first 12 months you could make serious savings. To illustrate these savings we’ve listed the below:
| Deposit | Plan (Based on confident plan) | Average investment costs (p.a) | Annual estimate |
| £5,000 | Original | 0.16% | £8 |
| £5,000 | Ethical | 0.7% | £65 |
| £20,000 | Original | 0.16% | £35 |
| £20,000 | Ethical | 0.7% | £140 |
These figures are intended as a guide. Fees are charged as a percentage of the total value of your Plans, and so the amount you pay will vary depending on the value of your investments across the month. Fees are quoted annually but charged monthly.
With investing your capital is at risk, so the value of your investments can go down as well as up, which means you could get back less than you initially invested. The tax treatment of your investment will depend on your individual circumstances and may change in the future. Wealthify does not offer advice, if you’re not sure whether investing is right for you, then please speak to a financial adviser.
Wealthify’s Savings Account is powered by ClearBank. Wealthify Limited is authorised and regulated by the Financial Conduct Authority (No. 662530). Over 18s, UK residents and UK taxpayers only. ClearBank Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (No. 754568). Across all your ClearBank products, up to £85,000 of eligible deposits is protected by the UK Financial Services Compensation Scheme (FSCS).
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
