The only way to earn returns on your savings and investments is by making wise investment choices. You cannot do this unless you know the most viable options to invest in.

Short term investments are not an ideal choice for anyone looking to enjoy a good return on investments in the future. This is because even though some of these short term investments may have very high rates of return, their risk of loss is also extremely high. Aim to make long term investments and your money will accumulate profits over many years, enabling you to go into retirement or middle age with financial stability.

One of the best options you can go for is tax free investment. There are many savings and investments plans that enable you to save money without paying tax on interest earned. One of them is the UK tax free bonds. Deposits for the bonds start from as little as £10 and you can pay up to £25 a month. One of the greatest advantages of the bond is that payout is guaranteed. In addition, you get bonuses depending on how well the investment is doing in the market. The payout given at the end is much higher than any high interest bank savings account could earn you. The higher your monthly payments, the higher the guaranteed minimum cash amount you will receive at the end of bond life.

Family investments should be steady and high enough to support the family in times of financial strain. The security of your job is not guaranteed and you may not have enough cash at hand to start a business when you are laid off. One way to protect your dependents and secure their financial security is by investing in a money-builder account. This is a long term investment account under which you choose a regular premium, payable every month. The premiums increase by 20% every year so that by the end of the first five years, you are paying double the amount of premiums you started with. Payment plans start as low as £10 and go as high as £100.

If your income allows for it, go for the highest premium plan on offer so as to ensure high returns. Prosperity plans are another type of family investments that will help secure your future. Most of them have a 10 or 15 year term life and are open for everyone aged between 18 and 55 years. Payments start from £30 and can be as high as £100. Your money is invested across a number of assets where it earns interest every year. In addition, your account earns an annual bonus, which leads to fast growth of your money.

The most important thing with savings and investment is to let them run their full course. This is the only way through which to receive the highest returns. When you cash them early, you will lose a lot of cash value. The payout for a tax free investment is tax deferred, meaning you will receive your minimum guaranteed amount plus bonuses in full.