We often hear people talking about how we should take notice of the amount of tax we are paying on our investments and how we should look for tax free options. Some people do not pay tax and so do not have to worry, but most people do. It is a shame to be throwing away money to the tax man, when you could be looking for investments that are tax free.
As you may know, I have my money in premium bonds, which is tax free because it is considered to be gambling. However, there are other tax efficient investment accounts where there is not an element of risk. If you consider taking out an ISA then this will allow you to invest a certain amount of money each year and not have to pay tax on the interest earned. This, unlike a premium bond, will give you a guaranteed payout each month that is tax free.
It is worth considering doing this because the tax can really add up, especially on larger investments and you could be keeping that money for yourself.