Nationwide investments guide

Investing can be complicated, but we’re here to keep things simple. Nationwide offers a small range of managed investments funds, each designed to reflect an attitude to risk.

These investments are brought to you by Nationwide and provided by Aegon, our trusted third party.

Important:

The value of your investment can go down as well as up so you may get back less than you originally invested.


What is an investment?

An investment is something you buy with the hope that it will gain value in the years to come. Many people invest with a financial goal in mind, such as saving for a house, a special purchase or an event.


Why you might want to invest

Investing for 6 years or more could help you:

  • Build a nest egg for the future: investing could grow your money faster than with interest on savings, helping you reach some of your more ambitious financial goals.
  • Beat inflation: interest rates on savings rarely keep up with inflation, so money can lose some of its buying power over time. Investing could help reduce the impact of inflation.
  • Turn a lump sum into a regular income: some investments, such as income funds, are designed to turn a lump sum investment into steady payments. For more information, use our investment advice service.
  • Take advantage of tax benefits: investing in a Stocks and Shares ISA is tax-efficient, meaning you won't pay tax on your return.

Things to consider before investing

You don’t need a lot to get started, but there are a few things to consider first. Before you invest, it’s important to pay off any debts, save for emergencies, learn about risk, think long term and plan for loss.

Find out more about when to invest and consider your attitude to risk

Get investment advice


Charges

Investing involves charges, which vary depending on:

  • whether you take advice
  • the fund you choose.

Nationwide and Aegon provide documents detailing the charges and terms and conditions. When considering an investment, you can use the documents to check the specific policies of what you’re agreeing to.


Our range of investments

To keep things simple, we offer a simple range of managed investment funds, each designed to reflect an attitude to risk.

You can invest a lump sum, monthly payments, or both. And, once your investment is set up, you can top up anytime and withdraw your money without penalties.

Nationwide sells funds, products and the platform as a package; these may be available separately outside Nationwide through other managers.

Our range of funds are all:

  • Provided by Aegon: our trusted third-party investments provider.
  • Multi-asset: investing in a range of assets, from cash and bonds (usually lower-risk) to shares (usually higher risk).
  • Growth or income funds: aiming to provide either long-term growth or steady payouts. We only offer income funds with our investment advice service.
  • Available to review online, using the Aegon Customer Dashboard, where you can manage your investments anytime.

What is a fund?

When you invest in a fund, you pool your money with other investors to invest in assets. The investments are made by a professional fund manager, who continually monitors their performance and adjusts the asset mix to keep the fund in line with its risk level.

Compared to investing independently, a fund gives you access to a broader range of investment opportunities, lower fees and access to greater management expertise.

What is an asset?

Funds invest in assets; an asset is anything of value that an individual, company or government owns. People buy or create assets with the expectation that they will provide a future benefit.

Each fund in our range invests in a mix of:

  • Shares, which are investments in UK and overseas companies. They’re generally the riskiest asset.
  • Bonds, which are loans from investors to UK and overseas companies or governments. They’re relatively low-risk.
  • Cash, which means investments to match the growth of cash. There’s no investment risk, but returns are often lower than the rate of inflation.

Choosing an investment account

We offer 2 types of investment account for your fund. Before you apply, consider which option best suits your needs.

Stocks and Shares ISA

Looking to use your annual ISA allowance?

This investment account is tax-efficient, so you don’t pay tax on your investment return for any money in this account.

Should you invest through us with a Stocks and Shares ISA, we’ll include a General Investment Account as well. If you use up your ISA allowance, this is a useful overspill account for your investment money. We’ll open this account for you at no extra charge.

Find out more about Stocks and Shares ISAs

What’s an ISA?

An Individual Savings Account (ISA) is a tax-efficient way to save or invest.

You can choose how to split your ISA allowance; either save with Cash ISAs, invest with Stocks and Shares ISAs or do both.

About our Cash ISAs

Note:

For 2020/21, the total ISA allowance is £20,000. Each tax year starts on 6 April. You can have more than one Stocks and Shares ISA, but you can only pay into one per tax year.

General Investment Account

Already have plans for your ISA allowance?

There’s no limit on how much you can pay into this account, but any investment return may be taxed.

Information: This information is based on our current understanding of HMRC tax rules, so it may change and will be personal to your circumstances. For the latest information, please check gov.uk (opens in a new window)


How to invest with Nationwide

If you’re comfortable making your own investment choices, you can begin investing now. Use our step-by-step guide to find out about risk, choose a fund, and apply online.

Choose an investment online

If you’re not sure which investments are right for you, our expert Financial Advisers can help. We’ll talk through your circumstances and goals, then give you a personalised investment recommendation based on what you’ve told us. This advice service has an additional cost, which we’ll outline beforehand.

Get investment advice