What is an ISA?‍

ISA stands for Individual Savings Account, it’s a tax-efficient account, also known as a ‘tax wrapper’ for a savings or investments account. This means you don’t pay tax on any returns you earn on money held in an ISA. They present a hugely popular way to save and invest in the UK.

There are four kinds of ISAs (more on this later) available and at Chip we offer access to a Cash ISA and a Stocks & Shares ISA - where you pay no tax on your savings interest or UK income or capital gains on returns (or profit) from your investments.

As of April 2024, you can open multiple of the same type of ISA in the same tax year, as long as you stay within your £20,000 ISA allowance.

You can read more about ISAs on the official UK Government website here.

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Who can open an ISA? 

To open an ISA you need to meet the following criteria 

• You’re over 18
• You’re a UK tax resident
• You aren’t a US citizen

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How do ISAs work?

ISAs function in much the same way as a regular bank or savings accounts with the key difference being you can only put a limited amount of money into an ISA every tax year, this is known as your annual ISA allowance.

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What’s my ISA allowance?

All UK residents over 18 currently have an annual ISA allowance of £20,000 per tax year. The tax year runs from 6 April to 5 April the following year. Any unused allowance doesn't roll over into the following tax year. 

For example, if you don’t use your full £20,000 this year (2024/25), and only put in £15,000, you can’t carry the remaining £5,000 over to the next tax year and invest £25,000 into an ISA.

As of the new tax year (2024/25) paying into multiple of the same type of ISA in a single tax year is now allowed.

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What are the benefits of an ISA?‍

• The main benefit of an ISA is that any returns you earn are tax-free. This means you don't need to pay any income tax, capital gains tax, or dividend tax on returns or interest you earn.
• Some ISAs (including Cash ISAs and Stocks & Shares ISAs) can be flexible, meaning you can withdraw and replace cash in the same tax year without it affecting your annual allowance. Not all providers offer this service however, so it’s best to check. Chip’s Stocks & Shares ISA is flexible. 
• You’ll often see the figure of £20,000 in relation to ISAs but this is just the maximum amount you can pay in. You don’t need to have this much available to get started and you can start seeing the benefits of an ISA from as little as £1. 
• You can transfer your ISAs from one provider to another at any time and even transfer between different types of ISAs. If you want to transfer to your Chip ISA from a provider outside of Chip, you must transfer all of it. Unfortunately, we are unable to offer partial transfers at this time.

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What types of ISA are there?

There are 4 types of ISA available in the UK. These are Cash ISAs, Stocks and Shares ISAs, Innovative Finance ISAs and Lifetime ISAs.

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How many ISAs can I have?

You can hold as many of them as you like but note that your £20,000 ISA allowance covers all of them (not £20,000 per ISA) in a single tax year.

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Which ISA might be right for you?

The type of ISA you want depends on your circumstances. A cash ISA may suit you best if you’re looking for easy access to your money and you think you might go over your personal savings allowance in a tax year.

However, it is worth considering that easy-access savings accounts without an ISA wrapper typically offer better interest rates.

If you’re taking a longer term view and are prepared to take on some risk, you can seek potentially higher returns with a Stocks and Shares ISA or an Innovative Finance ISA.

If you’re looking towards buying your first home or retirement then a Lifetime ISA could be the right fit. 

What is the Prize Savings Account? 

Our Prize Savings Account is an instant access savings account, where instead of earning interest, your cash deposits give you entries into a monthly draw to win tax-free¹ prizes paid directly into your account.

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Is it free to enter?

Yes! Entries are completely free of charge, all you need to do to enter is deposit and hold an average balance of at least £100 at the end of the month. 

Note - from 1 December 2025 onwards you will only need to hold a minimum average balance of £10. 

Every £10 of average balance gives you one entry in the monthly draw.

But to be clear; entries don’t cost you anything, and any money that you deposit can be instantly withdrawn whenever you want (but note that you will lose entries in the monthly draw).

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Is it a normal instant access savings account?

The Prize Savings Account is an instant access savings account with instant deposits and withdrawals.

It is powered by our partner bank ClearBank, and all deposits are ultimately held by them and covered by the Financial Services Compensation Scheme (FSCS) up to £120,000 (see our ‘how we protect your money’ webpage to learn more about FSCS at Chip). 

The only difference between the Prize Savings Account and any other savings account is that instead of earning interest, you will have a chance to win tax-free¹ prizes.

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How much can I save?

The maximum amount of cash you can save into the Prize Savings Account is £85,000. Any prizes won are paid as ‘bonus’ and are paid directly into your Prize Savings Account, and don’t count towards the £85,000 balance limit. 

It is not possible to deposit more than this amount, or to open multiple accounts in order to do so. Any attempt by an individual to open multiple accounts would result in a breach of the Prize Savings Account terms and conditions.

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What are the prizes?

All prizes are tax-free¹ sums of ‘bonus money’ we pay directly to your Prize Savings Account.

The prize amounts can change each month and we’ll publish next month’s prizes on this site no later than five calendar days before the start of the next draw. 

We commit to always paying at least one Grand Prize of £10,000 and 250 ‘additional prizes’ of £10. Though, generally we pay much more than this!

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What’re the odds of winning?

We can’t be exact with the odds of the next draw, as it depends on how many people enter and how many prizes are awarded. But we can share past odds. Please also note that you can win more than one prize per draw.

The odds of winning per entry (per £10 deposit) in the September 2025 draw were:

• 1 in 623 to win any prize

The average odds of winning per entry (per £10 deposit) in all 2025 draws were:

• 1 in 964 to win any prize

Data is based on January - September 2025.

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Are prizes tax free?

All prizes are tax-free sums of ‘bonus money’ we pay directly to your Prize Savings Account.

But note that Chip does not provide tax advice, and tax treatment depends on individual circumstances and may be subject to change in the future.

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‍Can I win more than one Prize? 

Yes you can. You can win multiple tax-free prizes in the draw. 

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When are the prizes paid?

If you win an ‘additional prize’, it will be added to your Prize Savings Account within five working days after the start of the month (but we aim to do this as close to the 1st of the month as we can). 

If you win the Grand Prize, we will contact you before it is paid (see below).

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What happens when you win the Grand Prize?

Grand Prize Winners need to confirm their win before the prize is paid. 

We will contact you by email and call you. You’ll have seen the recordings of these calls on our social media accounts. 

We will also ask you to take part in reasonable publicity, like being interviewed and filmed. We will obtain your express consent before filming and/or sharing any media. 

Winners have 10 working days to respond to us and claim their prize (we reach out by email, push notification and phone, leaving voicemails and even SMS).

If we can’t reach the Grand Prize winner, the prize will be deemed forfeit and the amount will be added to the following month’s prizes (i.e. like a ‘rollover’). 

For example, if a winner wins a Grand Prize of £10,000 in January but does not claim it, the Grand Prize available in February’s draw (for this example, also £10,000) would become the value of both January and February’s Grand Prizes combined (i.e £20,000).

Rest assured, we make every effort to contact the Grand Prize winner and we haven’t had a single Grand Prize unclaimed yet!

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How are the prizes awarded?

Prizes are paid as a bonus, not cash, directly into your Prize Savings Account.  

Please note, the prizes do not become cash until your full Prize Savings Account balance is withdrawn back to your current account, or if you transfer your balance to another account in Chip. Also note, when withdrawing prizes to your linked bank account, this can take up to five working days.

Prizes also do not count towards additional entries, unless you withdraw and redeposit. Prizes are not FSCS protected until they are withdrawn and redeposited.

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How do you enter?

Each month you will be entered into the prize draw provided you have an average balance of £10 or above in the Prize Savings Account (and have not opted out).

Every full £10 of average balance = one entry. 

The average balance you have on 11:59pm on the last day of the calendar month is what gets counted as your entries.

For example, if you have an average balance of £10 on 11:59pm on the last day of the calendar month you’d get 1 entries each calendar month (unless you opt out).  

If your average balance drops below £10, and remains at that level at the end of the calendar month, you’d have 0 entries in that month’s prize draw (if you choose to opt out of the draw, you’ll have 0 entries, regardless of your balance).

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How does average balance work?

Before we get into the detail of how average balance works, the important things to take away are:

• The earlier you deposit in the month the more entries you get.
• In the month after you deposit, every £10 of your balance = one entry in the draw (provided you don’t withdraw).
• Use the calculator to see how many entries you’ll get.

Your average balance is calculated by your daily balance divided by the number of days in the month. 

When are my entries counted?

Your entries will be taken at the end of the calendar month, but the draw will take place in the first week of the following month (no later than five working days after the end of the calendar month). 

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Where can I see my entries?

You can see your entries in your app, on the Savings tab under “Prize Savings Account” 

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Can I get extra entries?

You can occasionally earn extra entries through promotional offers. You might be able to double your entries, or earn entries for completing actions like referring a friend.

These are one-off promotions and will have their own eligibility and terms and conditions. Extra entries can count above the deposit cap of £85,000 (8,500 entries)

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How and when are the winners picked?

The draw will take place within five working days after entries close (the first five working days of the following month). Winners are selected using randomised draw software. 

The Grand Prize winner will be paid within 5 working days of them accepting the prize (see above), and we aim to pay ‘additional prize’ winners within the same timeframe, but it’s normally much quicker.

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Can I autosave into this account?

Yes, you can autosave directly into this account (Savings Plans settings can be found on the profile tab) and also deposit one-off amounts at any time by selecting the Prize Savings Account in the Savings tab and tapping ‘deposit’. Saves into this account also count toward your in-app savings goals that you can set up in the ‘Goals’ tab.

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Is this gambling or a lottery? Can I lose money?

The Prize Savings Account is not a lottery or gambling and it’s completely free to enter. You can’t lose money. You are depositing money in a FSCS protected account for the chance to win prizes. You can withdraw for free at any time.

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Can I open a Prize Saving Account for my child?

Unfortunately not, The Prize Savings Account is only available to the named individual who must be a UK resident over 18 years of age.

What is a Cash ISA?

A cash ISA, short for Cash Individual Savings Account, is similar to a conventional savings account. However, its distinctive feature is the exemption from taxation on the interest earned.

In each UK tax year (which runs from April to April), you can deposit up to £20,000 into a cash ISA.

ISA savings are in addition to the Personal Savings Allowance (PSA), which permits basic rate taxpayers to earn up to £1,000 in savings interest annually without incurring tax liabilities.

Higher rate taxpayers (40% tax rate) qualify for a reduced PSA of £500 per year, while additional taxpayers earning £150,001 or more do not receive any allowance.

ISA limits apply. £20k per tax year. Chip does not provide tax advice or financial advice. Tax treatment depends on individual circumstances and may be subject to change in the future.

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How do Cash ISAs Work?

If you're thinking about using a cash ISA to grow your savings, here's a brief overview of how they work:

• Cash ISAs are typically easy to open.
• You can save up to £20,000 annually, and your account accrues interest similar to a standard savings account.
• A variety of cash ISAs are available, such as easy access, regular saver, fixed rate, and junior ISAs for individuals under 18.
• Different ISAs may have varying terms, including withdrawal restrictions on fixed rate cash ISAs.
• Transferring funds from previous tax years into a higher-yield ISA account is possible. Avoid closing an ISA when switching; instead, contact your new ISA provider to facilitate the transfer.

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Interest Rates on Cash ISAs

The interest rate depends on the type of cash ISA and the chosen provider. Fixed rate cash ISAs offer a guaranteed return for a set period, whereas variable rate cash ISAs may change if the provider adjusts its interest rates.

Use our interest rates calculator to see how much you could earn. 

Cash ISA interest rates can vary between financial providers, so it’s always good to do your research with comparing Cash ISA rates.

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Cash ISA factors to think about

Before opening a cash ISA, consider the following factors:

1. Interest Rate: The interest rate determines your savings' returns. Be aware that initial high introductory rates may decrease after a year, so consider transferring your ISA funds to a higher-yielding account at that point.

2. Account Type: Choose between easy access, fixed, or regular saver ISAs based on your preferences for return and accessibility.

3. Alternative ISAs: Apart from cash ISAs, you can explore stocks and shares ISAs. These involve investing in the stock market, offering potential rewards but also bearing some level of risk.

4. Annual Limit: You can open only one cash ISA each year. Think carefully before selecting your cash ISA, keeping in mind that your total ISA savings can't exceed £20,000 in any tax year.

5. Deadline: The tax year concludes on April 5th. Any unused ISA allowance cannot be carried over, so invest before this date to maximise your tax-free benefits.

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How Many Cash ISAs Can I Have?

You can have multiple ISAs, but you can only deposit a maximum of £20,000 in a given tax year.

Be aware that transferring funds from previous years' ISAs does not count towards this limit.

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Cash ISA Rules

Cash ISA rules are straightforward:

• You can deposit a maximum of £20,000 per tax year.
• Transfers from existing cash ISAs to new cash ISAs or splitting transfers among different providers are allowed.
• To switch between cash ISA providers, you must request a transfer. If you withdraw the money yourself, you'll lose your tax-free allowance on the entire sum.
• You can transfer money from a stocks and shares ISA to a cash ISA, but this requires a form to be submitted to the new provider (but please note you can't currently do this with Chip).

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Pros and Cons of Cash ISAs

Pros of cash ISAs:

• Tax-free savings.
• No risk of capital loss compared to stocks and shares ISAs.
• Flexibility to transfer to higher-yield accounts while retaining tax advantages.

Cons of cash ISAs:

• High interest rates may drop after the first year.
• Fixed rate cash ISAs may lock your money for a set period.
• Not all accounts accept transfers from previous years, and exit fees may apply.

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Switching Cash ISAs

Switching could be considered if you find an account offering a higher interest rate. Ensure the new provider accepts transfers and inquire about any penalties for moving your funds.

You can transfer savings from both the current and previous years. It may also be possible to request a partial cash ISA transfer however not all providers can facilitate this.

Avoid closing the ISA, as this would result in losing the tax benefits. Instead, contact the new provider to arrange the transfer.

Every month, the Office for National Statistics (ONS) releases the latest figures on the UK labour market from its Labour Force Survey (LFS). While this data is obviously important news for job seekers and politicians, it is also one of the most closely watched days in the calendar for investors. 

The Unemployment Rate represents the percentage of the labour force that is without a job but is actively seeking work. It’s important to note that this figure doesn’t include everyone who isn’t working. Students, retirees, and those not looking for a job are classified as ‘economically inactive’. 

When investors are interpreting unemployment figures, they’re typically looking for three things:

1. The headline rate: Is this figure going up and down? 
2. Wage growth: Are pay packets getting bigger?
3. Vacancies: Are companies trying to hire?

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Why do investors care?

For investors, employment data is a key economic health indicator and can be a key catalyst for other key indicators. It can have a direct effect on interest rates, consumer spending and inflation. 

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The link to interest rates

This is the biggest reason the markets care about jobs data. Unemployment is a key data point for the Bank of England Monetary Policy Committee when determining their base rate of interest, which determines the cost of borrowing for other banks. 

If unemployment is low: businesses are in greater competition over staff, pushing wages higher. When wages increase, so does consumer spending, and inflation can follow suit. The Bank of England may raise interest rates to stop the economy from ‘overheating’. Higher rates are tougher on borrowers, and cause markets to dip as debt becomes more expensive. 

If unemployment rises: this suggests a potential slow down in the economy, and the Bank of England may cut interest rates to try and stimulate growth. Lower rates are often welcomed by markets and investors, as they make borrowing cheaper and encourage spending.

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The link to corporate profits

The UK economy is heavily driven by consumer spending, and this has strong links to employment.

When jobs are safe (low unemployment): People buy cars, book holidays and subscribe to services. This pushes profits up for consumer goods and services companies like airlines, high-street shops and restaurants.

When jobs are at risk (high unemployment): Consumers tighten their fists and generally stick more to essential spending. In this environment, consumer essentials suppliers like supermarkets and utilities tend to show more resilience, whilst higher end discretionary spending like luxury goods and leisure suffer.    

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The ‘good news is bad news’ conundrum

Drawing a clear link between job growth and a robust economy can be tricky, and the stock market's reaction to positive employment data is not always consistent. 

This often happens due to inflation fears. If the job market is doing ‘too well’, investors’ inflation fears deepen, and predictions of Bank of England rate increases can dampen market spirits. Markets prefer a stable number that shows a strong economy, without being so strong inflation fears creep in. 

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Read our full guide on economic indicators investors should watch out for.

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This week the UK’s most famous index, the FTSE 100, reached fresh highs, closing above 9,500¹ and extending its year-to-date gains to around 15%, a standout in global equity markets.²

We picked out the FTSE 100 back in June for its notable performance, and it's taken that momentum into the Autumn. 

While this isn’t a competition, the index of old British staples is having such a good year that it’s beating the young gun, Bitcoin, with its 2025 return trailing at around 10%*. And we all know which gets far more headlines.

* FTSE 100 and Bitcoin price accurate as of 15:45 on 23 October 2025 adjusted for dividends and currency. Source: Google Finance

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What’s pushing the FTSE 100 higher

Global asset manager Fidelity offered some key insight as to why the index is having such a strong year:  ³

• Strong defensive & diversified mix: The FTSE 100 is heavy on internationally-oriented giants in mining, energy, finance and defence that are benefiting from higher commodity prices and global volatility in areas like tech.
  
• Relative value appeal: UK stocks in well-established brands look comparatively cheap to U.S. counterparts, making them attractive amid global uncertainty.
  
• Easing external risks: Relief over U.S. trade policy, combined with resilient UK earnings and solid domestic data, has helped sentiment. 

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Why it matters to you‍

‍Even in a year of tech-mania and crypto frenzies, it’s a good reminder that you don’t always need to chase the headlines – whether it’s Bitcoin or the latest surging tech stock.

Long-term growth doesn’t have to be flashy. Steady gains from global brands, dividends, and value stocks can build wealth just as well, and often with a lot less drama.

Sometimes, the solid returns and stability you’re looking for are closer to home, and in investing, the tortoise often beats the hare.

How Chip can help you take advantage

With Chip, you’ve got access to diversified index funds like the FTSE 100, the S&P 500 and Nasdaq 100, alongside other regions, themes and sectors.

Check out those fund options in the Invest tab in your app today and see how you could put your money to work today with a tax-free Stocks & Shares ISA or General Investment Account.

When we think of stock market stars, it’s often the US names like Apple, Microsoft, and Nvidia that grab the headlines. But closer to home, a group of UK-listed companies has been quietly outperforming the wider market for years.¹

They’ve been dubbed the “Dashing Dozen”. These are twelve firms that have consistently flown the flag for the UK.
A recent feature in MoneyWeek highlighted them for substantially outperforming the stock market and “clearly doing something right” so let’s take a look.

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Who are the Dashing Dozen? 

This group spans a range of sectors — from defence and engineering to gaming and data services. Some familiar names include:

• BAE Systems – benefiting from increased global defence spending.
  
• Rolls-Royce – rebounding strongly with a surge in aerospace demand.
  
• Games Workshop – the maker of Warhammer, proving that niche hobbies can mean big business.
  
• Next – a high-street and online retail giant with a proven ability to adapt and thrive

Other members of the Dashing Dozen include: London Stock Exchange Group (LSEG), Halma, Diploma, Goodwin, Cohort, Concurrent Technologies, RELX, and 3i Group.

What they have in common is a track record of consistent growth, with all 12 businesses profitable and all paying dividends¹. These are qualities that appeal to investors building a long-term portfolio.

Always remember, when considering any investment, a diverse portfolio across different asset classes, sectors and regions can manage risk and smooth returns.

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Why it matters to you

For years, FTSE 100 has been seen as a bit sluggish compared to US markets, but the “Dashing Dozen” prove that the UK market still packs some punch. 

While not a guarantee of future performance, they do highlight that businesses with durable advantages and strong demand – in sectors like defence, data, and gaming – can offer investors both resilience and opportunity.

So next time you think about your portfolio mix, remember: sometimes the dash for growth doesn’t require looking across the Atlantic – it could be right here at home.

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How Chip can help you take advantage

With Chip, we offer a range of index funds such as the FTSE 100, that include all of these high-growth companies in a single investment, as well as other popular indexes like the NASDAQ 100 and S&P 500.

Open a Stocks & Shares ISA in minutes, invest from £1, and manage everything right from our app. Just go to the ‘Invest’ tab to get started.

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The word investing can send a chill down some people’s spines.

Terms like “volatility” and “risk” can sound straight out of a horror film. And ‘losing all your money’ well that’s the stuff of nightmares.

But here’s the truth: investing doesn’t have to be scary. In fact, once you understand it, it’s far less Freddy Krueger and much more Casper the friendly ghost.

Let’s (ghost)bust a few myths and show you how Chip helps keep your money safe from what’s lurking in the shadows.

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Myth 1. “I could lose everything!?”

This is the classic jump scare. But barring something like a zombie apocalypse, it's almost impossible. 

Yes, markets go up and down, that’s part of the story. 

But when you invest through Chip, your money is spread across hundreds (sometimes thousands) of companies, sectors, and regions. So even if one part of your portfolio takes a fright, others can help you get through the night.

And if we do have a ‘28 Days Later’ scenario, then I think we all have bigger problems than the stock market.

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Myth 2. “I need to be an expert”

You don’t need to be a mysterious, all-knowing spectre hiding in a candlelit library to invest. With Chip, you can start from as little as £1, choose from clear, ready-made investment funds that are good to go.

The hard work is done for you, partnering with (real) experts who manage your investments funds for a low-transparent fee, so you can focus on growing your money without wondering what’s hiding under the bed.

Simple, smart, and built for everyone – not just the wizards of Wall Street.

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Myth 3: “Now’s not the right time.”

Trying to time the market perfectly is like trying to cheat death in Final Destination – it’s highly unlikely to happen

Markets move, the news cycle changes, and there’s always a new headline to worry about. But history shows that staying invested, rather than trying to time it, is how you survive the scary bits and see the best long-term results.

If you’re nervous, try easing in with pound-cost averaging: investing small amounts regularly, so you smooth out the ups and downs over time. It’s a calm, steady way to build your confidence - and your wealth.

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Myth 4: “You need loads of money to get started.”

This one is another work of fiction – like a 104-year-old vampire who decides to use his immortality to endlessly repeat high school.

In fact, getting started early (even with small amounts) can make a huge difference thanks to the magic of compounding; where your returns start earning returns of their own.

At Chip, you can begin with just £1 and build from there. No big commitment, no minimums — just a realistic, approachable way to put your money to work.

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So this Halloween…

Don’t let the fear of the unknown and old ghost stories stop you from getting started with investing.

And as an added bonus, start now and pay 0% platform fees* until 31 January 2027. Eligibility & T&Cs apply.

With Chip on your side, a clear plan, and a little guidance, investing isn’t a horror story — it’s just another way to grow your money.

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* Fund management charges apply.

Clean energy isn’t just about climate headlines or ‘going green’ anymore; it’s now a serious industry and a fast-growing investment opportunity.

What started as a niche, policy-driven sector is now a global growth engine, attracting billions in capital and reshaping how we power our world.

Energy companies, infrastructure providers, and technology firms are all benefiting, and potentially, so could investors.
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Three reasons to take notice

The pursuit of net-zero and the need for cleaner energy solutions isn’t confined to one region or developed economies, it’s truly global.

1. UK leads on solar and wind

Here at home, the UK has approved over 16 GW of new renewable projects this year – that’s almost double last year’s figure. Solar power is having a record run too, already generating more electricity in 2025 than in all of 2024.¹

2. US investment hits new highs

Across the Atlantic, the US clean energy sector attracted more than $300bn in investment last year, boosted by policy support like the Inflation Reduction Act. Wind, solar, and EV infrastructure are all scaling up rapidly.²

3. Asia doubles down on renewable growth

China remains the world’s biggest investor in renewables, rolling out huge capacity in solar and batteries.³ Meanwhile, India is quickly catching up, with its renewable output expected to grow 10% this year alone.⁴

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Why it matters for you

Clean energy is no longer a future promise — it’s happening right now. Policy support, infrastructure spending, and technological advances are all driving investment opportunities in this space. 

So for long-term investors, exposure to clean energy generation, renewables, storage, and supporting sectors could be an important part of any portfolio focused on future growth.

Always remember, when considering a specific sector, a diverse portfolio across different asset classes, industries and regions can manage risk and smooth returns.

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How Chip can help you take advantage

At Chip, we offer a range of thematic funds such as Clean Energy which includes multiple companies involved in the global clean energy transition, all in a single investment.

Open a Stocks & Shares ISA in minutes, invest from £1, and manage everything right from our app. Just go to the ‘Invest’ tab to get started.

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¹ Financial Times

² Environmental Protection Agency

³ The Renewable Energy Institute

⁴ AL Circle

A bull market is a period when a broad market index, like the S&P 500, rises by 20% or more from its recent lows. This upward trend is fuelled by widespread investor confidence and optimism, which drives a sustained period of increasing prices.

During a bull market, investors use various strategies to try and profit from the rising values. A bull market is the direct opposite to a bear market, which is a market drop of 20% or more. 

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When are we in a bull market?

Similar to bear markets, bull markets can only be identified retrospectively, once a major index has risen 20% or more from a recent low. 

Certain economic signals and market conditions can create the environment for a bull market:

• Strong economic growth: When the economy is expanding, it's a powerful driver for the stock market. Key signs include low unemployment, rising GDP, and healthy wage growth, which all contribute to higher consumer spending.
• Rising corporate profits: A bull market is built on the success of businesses. When companies consistently report strong earnings and positive future outlooks, it boosts investor confidence and drives their stock prices higher. 
• High investor confidence: When investors feel positive about the future of the economy and corporate earnings, they are more willing to buy stocks, creating upward momentum.
• Supportive monetary policy: When central banks, like the Bank of England, keep interest rates low or stable, it makes it cheaper for companies to borrow and invest. This stimulates the economy and often makes stocks a more attractive investment compared to lower-yielding bonds or savings accounts.

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How long do bull markets last?

Although no two bull markets are the same, historical data shows bull periods far outlast bear periods on average. For example, the average duration of the seven bull markets between 1969 and 2024 was six years and nine months. In contrast, the average duration of the six bear markets in the same period, was one year and three months.¹

The contrast in this data is central to the principle that over time, markets have trended upwards, more than they have downwards. The crucial takeaway is that staying invested is important for maximising potential returns, as even if you miss the bad days, you could also be missing out on great runs too. 

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What does bullish mean?

A bullish investor expects an upward trajectory in prices (the direct opposite of being bearish). Confidence is typically based on positive signs such as:

• Strong company earnings reports.
• Positive economic news e.g. declining unemployment.
• Innovative new products or services.
• Favourable industry trends.

A bull’s primary goal is to profit from these rising prices. The most common strategy is simply buying an asset and holding it, also known as ‘going long’. This principle can be applied by any investor hoping to generate returns in the market.

More active investors might take more risk:

• Buying call options: essentially reserving the right to buy a stock at a set price, which becomes profitable if prices rise beyond the call level. 
• Growth stocks: speculating on companies in high-growth sectors, which have historically yielded greater returns than the rest of the market. 

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How to approach a bull market?

It’s important to approach bull markets with the same disciplined approach you’d apply to any investing scenario. The ultimate goal is to not miss out on the upward trend, whilst not being driven by emotion which can lead to mistakes. For example:

• Staying invested but avoiding FOMO: it can be tempting to chase ‘hot stocks’ in high-growth areas in order to pursue the biggest gains, but it’s important to balance opportunity with your risk level. Don’t jump in with more money than you’re comfortable investing, and stick to your long-term plan. 
• Review and rebalance: bull runs can cause your portfolio to drift from its set targets. Better performing assets will grow to become a larger percentage of your holdings, causing an unintentional shift in risk. Consider rebalancing to your original allocations, by moving assets from overperforming to underperforming assets to lock in some gains and stay diversified.
• Regular investing: by sticking to your usual regular investment plan, you won’t get drawn into trying to time the market. A steady approach ensures you're exposed to differing purchase prices, rather than going all in at a potential market high.

Bull markets don’t last forever. Whilst they can present solid opportunities for gains, and staying invested is important, it’s equally important to not get carried away and invest more than you’re comfortable with. Stick to your investing plan and avoid getting too caught up in the latest trend, as you may become overweight in a particular theme or market, without even realising. 

Read our full guide of economic indicators investors should consider.