Ed’s approach:

Ed is considering opening a savings account and will make regular payments into it each month. He may consider investing a regular amount in the future, once he has built up some savings.

If he needs to he knows he can change or stop his monthly payments at any point.

Ed is an illustrative character designed to highlight why and how people approach investing. His financial situation, objective, knowledge and approach are fictional and you should always consider your own before investing.

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Important Information

Please remember the value of your investments and any income from them can go down as well as up and you may get back less than the full amount you invest. When you invest you should be prepared to have your money invested for the medium to long term, typically at least 5 years.
With traditional savings your capital will grow when interest is added, however over time the real value will be affected by inflation. With investments, your capital isn’t guaranteed to grow, however they have more potential to balance the effects of inflation. 
The tax treatment of your savings and investments, including the favourable tax treatment of ISAs, may be subject to change in the future and depends on your individual circumstances. He also knows that each tax year there are limits to how much he can pay in. You can only pay into one cash ISA, one stocks and shares ISA, one innovative finance ISA and one lifetime ISA each tax year, up to the annual ISA limit.