What is liquidity?

In finance, liquidity describes how quickly you can sell an asset and turn it into cash at a similar market value.

Assets with liquidity, like publicly traded shares, can usually be sold almost instantly. Illiquid assets, like property or rare collectibles, may take weeks, months or even longer to sell. 

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Understanding how liquidity works

Imagine you own a watch. If it’s a popular brand and model, you can likely sell it quickly at a fair price. This is a liquid asset. But if it’s a niche, custom-made piece, you may struggle to find a buyer willing to pay a reasonable amount, making it illiquid. 

In investing, the same principle applies. A company’s shares listed on a major exchange are easy to sell due to high demand. But a privately held company share may be hard to sell, even if it’s valuable, due to low market interest. Understand stock market basics. 

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What is market liquidity?

Market liquidity refers to how easily assets are bought and sold in a particular market. A liquid market has lots of participants and more stable prices. 

In contrast, an illiquid market sees fewer transactions, and more volatile prices.

For example, major stock exchanges in the UK (like the London Stock Exchange) tend to be highly liquid, whereas niche bond markets or alternative investments may not be. 

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How to measure liquidity

Liquidity isn’t just a feeling, it can be measured using specific indicators. These include:

• Bid-ask spread: The smaller the difference between buying and selling price, the more liquid the asset. 
• Trading volume: Higher volume generally means more liquidity.
• Turnover ratio: How frequently an asset is traded relative to its total number of outstanding units.
• Time-to-cash: How quickly an asset can realistically be sold. 

In broader financial markets, indicators like the Liquidity Coverage Ratio (LCR) are used by institutions to assess liquidity under stress. LCR is the minimum amount of highly liquid assets that financial institutions are required to hold by international regulations.

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Understanding how liquidity varies across asset classes

Not all investments are equally easy to buy or sell. Liquidity can vary significantly depending on the type of asset, and understanding these differences can help investors make smarter choices based on their goals and time horizon. 

• Cash and cash equivalents, such as savings accounts or money market instruments, are the most liquid assets. You can typically access your money almost instantly, with little to no loss in value.
• Publicly traded shares, like those listed on major stock exchanges, are also highly liquid. They can usually be bought or sold quickly during market hours, with plenty of buyers and sellers ensuring fair pricing.
• Government bonds are generally considered liquid, especially in developed markets. However, they may be less liquid than shares depending on the issuer, maturity and market conditions.
• Real estate is a classic example of an illiquid asset. Selling a property can often take months, involves significant transaction costs, and can be heavily influenced by market conditions. 

At the far end of the spectrum, private equity, venture capital and collectibles (like fine art) are among the least liquid investments. They may take years to exit and often have limited secondary markets.

For new investors, starting with more liquid assets provides greater flexibility, especially if you need access to funds in the short term.

As you gain experience, you might explore less liquid opportunities, but it's important to understand the trade-offs in advance. Learn about passive and active investing. 

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How can liquidity affect investment strategies?

Understanding what liquidity is helps influence investors with making investing decisions based on their own personal financial situation. This could include:

• Portfolio design: Investors may avoid illiquid assets if they anticipate needing cash soon. What is portfolio management?
• Risk management: Liquid assets are easier to sell in a financial crisis, such as a recession.
• Returns: Illiquid assets sometimes offer higher potential returns to compensate for added risk, this is known as the liquidity premium.

New investors should balance liquidity needs with return goals, especially if they’re building emergency funds or planning for short-term goals. 

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Liquidity and investing summary

Liquidity plays a central role in how markets function and how investors manage risk and opportunity.

Whether you're buying your first shares in an ETF or considering diversifying into alternative assets, understanding liquidity helps you make informed, confident decisions. 

In the next guide, we’ll explore economic indicators investors should know, diving into how market data can signal future trends and help guide your investment strategy, 

What is a SIPP?  

A SIPP is a private pension ‘wrapper’ that gives you flexibility over both your investments choices and how you manage old pensions. With a SIPP, you can:

• Consolidate: Combine old workplace pensions that you no longer contribute to and may not be working for you into a single account. Read our full guide on pension consolidation.‍
• Invest with control: Get full visibility and control over your investments within your pension.

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How does a SIPP work?  

A SIPP works in a similar way to other defined contribution pensions, but with added flexibility and often a wider range of investment choices. It functions like a tax-efficient retirement savings account. You contribute, and the government tops your contributions up with tax relief.

• Tax relief bonus: If you pay in £80, the government adds £20 in basic-rate tax relief to make your total contribution to£100. Higher and additional rate taxpayers can claim extra relief.
• Investments: Your contributions are then invested into your chosen assets with the aim of growing your money.‍
• Tax-efficient growth: As long as investments are held inside the SIPP, you pay no Capital Gains Tax or Income tax on any growth generated in the pension.

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How to set up a SIPP  

Setting up a SIPP is simple:

1. Choose a provider: Look for a provider that offers clear fees and an investment offering that’s right for your retirement goals and level of experience.
2. Fund your account: You can transfer your old pensions, set up monthly recurring contributions, or pay in a lump sum.‍
3. Stick to your strategy: Choose investments that align with your goals and risk appetite. Some SIPPs require you to choose individual stocks, while many also offer ready-made solutions such as Target Date Funds. These funds automatically shift from higher risk to lower risk investments as you approach retirement.

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Can I have a SIPP and a workplace pension? 

Yes, you can have both at the same time. A common strategy used is to keep current workplace pensions to benefit from employer's contributions, but use a SIPP to consolidate all previous workplace pensions that are no longer being paid into.

Having a SIPP with those old pensions generally makes it easier to keep track of where each old pot is and more control on how it is invested

Read our full guide on workplace pensions.

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How many SIPPs can I have? 

Savers are not limited by the number of SIPPs they can hold. However, some people find it easier to keep everything in one place. Having a single SIPP can make it easier to get a better picture of retirement wealth and can often reduce the fees paid.

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How much can I pay into a SIPP? 

The two main limits you need to be aware of when paying into a SIPP are:

• The earnings limit: You can usually only receive tax relief on personal contributions up to 100% of your relevant UK earnings each tax year. For example, if you earn £30,000, you cannot personally contribute more than £30,000 and still receive tax relief
• The annual allowance: There is also a total cap of £60,000 per tax year (or 100% of your earnings, whichever is lower). This allowance includes all contributions - from you, your employer, and the government’s tax relief. 

Read our full guide on pensions tax, relief and allowances.

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What age can I draw my private pension? 

The trade-off for the tax benefits of a SIPP is that your money is locked away until a set minimum age.

• Currently you can access your SIPP from age 55.
• From 2028 this will rise to age 57.

Once you reach this age you’ll have the options to:

• take 25% of the pot as a tax-free lump sum, 
• buy an annuity (guaranteed income plan), or;
• leave the rest invested and withdraw the cash as you need (drawdown).
  

We’ll come back to each of these three scenarios later. 

Read our full guide on retirement ages.

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The State Pension

Whilst your workplace pension and SIPP help serve as your tools for building your personal retirement pot, you may also be entitled to the State Pension, provided you meet the qualifying criteria. This serves as a guaranteed foundation to your retirement income, with the amount you receive based on your National Insurance record. 

In the next guide we’ll cover how the State Pension system works, and what you can expect to receive if you qualify.

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.

We need to stop supporting Chip on an older version of Apple Operating System (OS), iOS 15. This is due to it no longer being supported by Apple’s security updates.

If your device is on iOS 15, and you don’t / won’t / can’t update to a newer version of iOS, you no longer be able to access your Chip app.

This is most likely to affect you if your phone is around 10 years old, and/or you don’t have automatic iOS updates switched on.

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What this means

This means after 23 July 2025 you won't be able to log in to Chip using a device running iOS 15 unless you update to a newer version of iOS.

If you use an older Apple device (i.e. around 8-10 years old) you may need access to a newer device that supports a  newer version of iOS, as older Apple devices don’t always support the newer operating systems.

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How to find which version of iOS you're on

You can double check this on your phone by navigation Settings > General > About and look for ‘iOS Version'.  

Apple offers a guide to find the software version on your iPhone, iPad or iPod touch.

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How to update

It’s easy to update your phone, simply open your device, go to Settings > General, then tap Software Update.

Apple offers a clear and simple guide here, which also covers how to switch on automatic iOS updates.  

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Why are we doing this?

If you’re confused about the above, here’s a quick explanation.

Your device’s software is powered by an Operating System (OS) called iOS, which is built and maintained by Apple.

Apple regularly releases new versions of iOS to make your phone work better and keep you safe. The latest version is iOS 18.

Apple no longer maintains or releases security updates for iOS 15.

This means we can’t guarantee the security of Chip accounts using our app on devices running iOS 15.

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What if you can't update?

After 23 July 2025 you won't be able to log in to Chip on a device running iOS 15.

You should be able to update your device to a newer version of iOS, but if your phone is 8-10 years old you may need to get access to a newer, supported device.

If this is not possible for you, you may wish to consider withdrawing your money and closing your account before 23 July 2025.

However, if you don’t withdraw, your account will remain open and secure, and you'll be able to access it at any time using a newer device.

Finally, as a Chip customer you can contact us in writing or via email to withdraw your money (note there will be additional security measures and identification you’ll need to provide).

If you have any further questions don’t hesitate to drop into your in-app customer support.

Recognising savings burnout

Savings burnout is more than just feeling the pinch before payday. It can show up as:

• Apathy towards financial goals;
• Increased impulse spending;
• Neglecting your budget;
• Resentment towards your savings efforts.

If any of this sounds familiar, take a step back and review your financial patterns.

Have you been spending more or saving less? You might be experiencing savings burnout without realising it. Checking your actions holistically can help you pinpoint where things changed.

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Reframe your mindset

Rather than seeing saving as a sacrifice, reframe it as an investment in your future self. Every pound saved isn’t depriving you—it’s empowering your future.

For instance, for every £100 you save, use a savings calculator to estimate what it could be worth in 10 years with compound interest. Seeing your contributions grow over time can motivate you to keep going.

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Celebrate small wins

It's easy to overlook minor successes when chasing big financial goals. Did you resist an impulse buy? Or save that work bonus instead of spending it? Celebrate those achievements!

However, try to choose rewards that won’t drain your budget, like an afternoon to yourself, extra reading time, or skipping a social event you’ve been dreading. Sometimes, self-care and small indulgences are the perfect reward.

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Embrace flexibility

A rigid savings plan can lead to burnout. Build flexibility into your budget to allow for the occasional indulgence.

Setting aside 'fun money' can help you balance saving for the future with living today. It’s essential to enjoy the journey, not just focus on the destination.

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Diversify your savings strategy

Feeling stuck? Shaking up your savings approach might be what you need. Consider:

• Exploring different types of savings accounts;
• Checking out tax-efficient options like ISAs;
• Looking into ethical investment opportunities.

A diversified approach can keep you engaged while potentially increasing your returns.

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Practise financial self-care

Just as you would take rest days in your fitness routine, incorporate financial self-care into your money management. This could mean:

• Taking a day off from checking your accounts;
• Treating yourself within your budget;
• Spending time on low-cost hobbies.

Financial wellness is a key part of your overall well-being, so make time for it.

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Support and inspiration

If possible, connect with people who share your financial goals. Join online communities, listen to finance podcasts, or attend local savings clubs. Building a supportive network can help keep you motivated and accountable.

The Chip community is a great place to start. Engaging with like-minded individuals can rekindle your drive to save.

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Reassess, realign

If savings burnout persists, reassess your goals. Are they still relevant to your current life? Don’t hesitate to adjust your targets as needed. Regularly using the goal-setting feature in the Chip app can help you keep things aligned with your values and life circumstances.

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The path forward

Overcoming savings burnout requires a balance between discipline and flexibility. It’s about moving forward steadily, not racing to the finish line. With the right mindset and tools, you can reignite your savings spark and get back on track.

Remember, Chip is more than just a savings tool – it’s your partner in building a brighter financial future.

With each small step you take, you’re moving closer to your goals. Every great financial journey has challenges, but it’s how you overcome them that counts.

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What is ESG investing?

ESG investing is a strategy that considers environmental, social, and governance factors when selecting investments. 

Rather than focusing solely on financial returns, ESG investing also evaluates how companies manage risks and opportunities related to:

• Environmental impact (e.g. carbon emissions, waste management, energy efficiency)
• Social practices (e.g. employee treatment, community impact, supply chain ethics)
• Governance structures (e.g. executive pay, board diversity, shareholder rights)

While financial performance remains important, ESG investing applies an additional layer of scrutiny to assess whether a company acts responsibly and sustainably.

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How ESG investing works

At its core, ESG investing uses specific non-financial criteria to screen or select investments. This can be done in several ways:

• Positive screening: Choosing companies that score highly on ESG factors
• Negative screening: Excluding companies that operate in controversial industries (e.g. tobacco, fossil fuels)
• ESG integration: Incorporating ESG analysis alongside traditional financial metrics
• Thematic investing: Focusing on specific ESG-related themes like clean energy or gender diversity
• Engagement and stewardship: Actively engaging with companies to encourage better ESG practices

Many fund managers and platforms now offer ESG-labelled products, often relying on third-party ESG ratings to guide decisions.

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An example of ESG investing

Imagine an investor wants to support the transition to a low-carbon economy.

Instead of buying shares in a traditional energy company, they invest in a fund that holds companies developing renewable energy technologies, such as wind or solar power.

At the same time, they may avoid companies with poor track records on pollution or that are heavily reliant on coal production.

This kind of decision reflects an ESG mindset, considering not just potential returns, but the broader impact of each investment.

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Advantages and Disadvantages of ESG Investing

Advantages of ESG investing include:

• Alignment with values: Investors can support causes they care about without sacrificing financial goals.‍
• Risk management: Companies with strong ESG practices may be better positioned to handle long-term risks.‍
• Growing demand: Interest in ESG is increasing, which may drive innovation and market opportunities.

Disadvantages of ESG investing include:

• Inconsistent ratings: ESG scores can vary between providers, leading to confusion.‍
• Greenwashing: Some companies may overstate their ESG credentials without meaningful action.‍
• Limited track record: While ESG funds have grown, long-term performance data is still evolving.

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ESG metrics used

Measuring ESG performance involves analysing both qualitative and quantitative indicators. Common metrics include:

• Carbon emissions and energy usage (Environmental)
• Workforce diversity, employee turnover (Social)
• Board independence, executive compensation (Governance)

These metrics are typically aggregated into an ESG score by third-party rating agencies. However, scoring methods vary, making it important for investors to look under the surface rather than relying on a single number.

In the UK, regulatory bodies like the Financial Conduct Authority (FCA) are working to improve transparency and standardisation in ESG disclosures, but this remains a developing area.

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How ESG differs from sustainable investing

While ESG and sustainable investing often overlap, they’re not identical. ESG investing focuses on how environmental, social, and governance risks and opportunities affect a company’s performance and, in turn, an investor’s returns.

Sustainable investing prioritises broader long-term goals, such as promoting a more sustainable future, even if the financial returns take longer to materialise.

In simple terms, ESG is often about risk and responsibility, while sustainable investing is more explicitly mission-driven.

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Other considerations for UK investors

• Regulation and Disclosure. The UK has committed to making climate-related financial disclosures mandatory for many large companies and asset managers. This is intended to help investors make more informed decisions and reduce the risk of greenwashing.‍
• Tax and Investment Wrappers. As with any investment, ESG assets can be held in ISAs or SIPPs, offering potential tax advantages. However, ESG status doesn't inherently make an investment more or less tax-efficient.‍
• Due Diligence is Key. Regardless of ESG labels, it’s important for investors to review the fund’s holdings, strategy, and costs, and ensure it aligns with their personal goals and risk tolerance.

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The bigger picture of values-based investing

ESG investing offers a growing range of options for UK investors who want to align their financial decisions with their values.

It’s not about choosing between returns or responsibility, but about understanding how both can work together when guided by thoughtful analysis.

As ESG awareness matures, many investors are exploring even more focused strategies, like thematic investing, which allows you to back specific trends or ideas (such as clean tech, water security, or ageing populations).

Next in this series: Fractional Shares: Investing in Pieces, where we’ll explain how fractional investing works, and how it’s opening up access to markets for beginners.

What is portfolio management? 

Portfolio management is the ongoing process of you selecting, monitoring and adjusting your investments to meet your financial goals.

It’s not just about choosing a few investments and crossing your fingers – it’s about seeing the full picture and making smart, informed choices.

That means thinking about the mix of investments you own (also called asset allocation), how much investment risk you’re taking, and making regular adjustments as life or market conditions change.

Done well, it can help you grow your wealth steadily while keeping risk at a level you’re comfortable with.

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Investment portfolio management examples

The following portfolio management strategies are commonly used:

Cautious portfolio: Might include a large portion of bonds and cash, with a smaller slice in equities.
Great for: people close to retirement or those who don’t want much risk.
Balanced portfolio: Typically splits investments between equities and bonds, aiming for moderate growth with manageable risk.
Great for: long-term investors who want a bit of both worlds.: Heavier on equities (including global and emerging markets), and lighter on bonds or cash. 
Great for: investors with a higher risk tolerance and a longer time horizon.

These are just examples; your ideal portfolio depends on your goals, timeline, and how much market fluctuation you’re okay with.

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DIY investing vs managed portfolios

There are two main tracks you can go down with your portfolio:

‍DIY Investing

You pick and manage all your investments yourself.‍

Great if: you like having full control, enjoy researching markets, or want to tailor things really specifically. But it requires time, confidence, and a steady hand when markets wobble.

Managed Portfolios

You choose a risk level, and a provider (like Chip) builds and maintains a diversified portfolio for you.‍

Great if: you want a more hands-off approach, but still want exposure to the market. You’ll usually pay a small fee for this convenience, but it can be well worth it if it helps you stay invested long-term.

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What is asset allocation & why it matters?

Asset allocation is the mix of different asset classes in your portfolio – typically things like equities (stocks), bonds, cash, and sometimes alternative assets like property or commodities.

Getting the mix right is crucial. Why? Because it’s one of the biggest factors that affects your portfolio’s overall risk and return.

• More equities – higher potential returns, but also more ups and downs.
  
• More bonds – lower risk, but also lower growth.
  

Your ideal allocation depends on your goals and how long you’re planning to invest. This is not set in stone, and it can (and should) shift over time.

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How to rebalance your investment portfolio

Over time, some of your investments will grow faster than others, which means your portfolio can drift away from your original asset allocation. That’s where rebalancing comes in.

Rebalancing means adjusting your investments to bring them back in line with your target allocation.

For example, if stocks have surged and now make up 80% of your portfolio instead of your intended 60%, you might sell some and buy more bonds or cash-equivalents.

Some managed portfolios (like what’s listed on the Chip app) automatically rebalance for you. If you’re doing it yourself, you might want to set a calendar reminder every 6 or 12 months to review your allocation.

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Understanding behavioural investing & common mistakes

When it comes to investing, your emotions can be your worst enemy. Many investors panic-sell when markets fall, or chase after the latest stock or trend, only to end up buying high and selling low. 

This is known as behavioural investing, and it’s often where people slip up. The majority of investment gains are dampened by a degree of investor error, and generally the less decisions you can make, the better. 

The next guide in our series will dive into this in some more detail. 

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What is the State Pension? 

The State Pension is a regular payment you receive from the government during retirement, funded by your National Insurance contributions during your working years. 

There are currently two systems in operation, depending on your age:

• The “new” State Pension: For men born on or after 6 April 1951 and women born on or after 6 April 1953.
• The “basic” State Pension: For anyone born before those dates.

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What is the State Pension age? 

The State Pension age is the earliest age you can start receiving your payments. This is set by the government and is subject to change.

• Currently the State Pension age is 66 for both men and women.
• Future changes have been legislated for a rise to 67 between 2026 and 2028.

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How much is the State Pension? 

The amount you’ll receive is based on which system you fall under and your National Insurance. These rates apply to the 2025/2026 tax year. 

• The full rate for the new State Pension is £241.30 a week (approx. £12,547 a year)
• The full rate for the basic State Pension is £184.90 a week (approx. £9,615 a year)

For couples 

A common question is whether a joint amount is paid out to couples. The State Pension is based on your individual National Insurance record, meaning you and your partner will claim separate amounts. If you both qualified for the full State Pension, you’d receive an income of approximately £25,095.

For a widow 

If your spouse or civil partner passes away, you may be able to inherit some of their State Pension, but the rules around this are complex. 

• Under the old system (reached pension age before 2016) you can often inherit a significant portion of your partner's ‘Additional State Pension’ (SERPS).
• Under the new system (reached pension on or after 6 April 2016) it is much harder to inherit. Typically, you can’t inherit their main pension, but you may inherit a ‘protected payment’ if they built up a very large pot under the old rules. 

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How much State Pension will I get? 

The amount you receive is not a fixed salary, it is a payment calculated from your ‘qualifying years’ of National Insurance (NI) contributions.

A qualifying year is one in which you were working and made NI contributions, received NI credits (e.g. you were ill, unemployed or a carer), or made voluntary NI contributions. 

• To qualify for the full amount you generally need 35 qualifying years.
• To qualify for any amount you need at least 10 qualifying years.
• To qualify for a proportional amount you’ll need between 10 and 35 qualifying years (e.g. 18 years would qualify you for half the full amount). 

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How do I check my State Pension forecast?

If you want to check how much State Pension you might qualify for, you can do this online.

Check your State Pension forecast using the free tool on the government website.

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When do I get my State Pension?  

You can claim your State Pension up to four months before you reach your qualifying age. This is then paid directly into your bank account every four weeks . 

The State Pension is taxable income, however, this is not deducted from the payment directly; it makes up part of your Personal Allowance.

Any due tax is usually taken from your other income sources like a private pension or salary. 

What is the full State Pension?

The ‘full State Pension’ refers to the maximum standard rate (£241.30 per week for the new State Pension).

However, it is possible to receive more than this if you have deferred (delayed) taking your pension, or if you have ‘Protected Rights’ from the old system. 

‘Protected Rights’ refers to a protection of claimants of the old ‘additional’ State Pension, who were entitled to receive more than the new full State Pension. 

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What is Pension Credit? 

Pension Credit is a separate, tax-free benefit for people over State Pension age who are on a low income.

It is distinct from the State Pension because it is means-tested; based on your income and savings, not your National Insurance record. 

It is often called a 'gateway benefit' because claiming it can unlock other support, such as free TV licences (for over-75s) and Council Tax reductions.

The Winter Fuel Payment is now available to pensioners with an income up to £35,000, but Pension Credit remains the most reliable route to ensure you receive it if you are on a low income. 

How much is Pension Credit a week? 

For the 2026/27 tax year, Pension Credit tops up your weekly income to a guaranteed minimum level:

• For single people this is £238.00 per week.
• For couples tops up joint income to £363.25  per week.

If you have a disability or caring responsibilities, you may be entitled to extra amounts on top of this.

Who is eligible for Pension Credit? 

You must live in England, Scotland, or Wales and have reached State Pension age.

• Income rule: Your weekly income generally needs to be below the thresholds listed above.
• Savings rule: If you have savings over £10,000, your entitlement is reduced. For every £500 you have over £10,000, it counts as £1 of weekly income. 

How to apply for Pension Credit? 

You can apply online via the GOV.UK website, by post, or by phone. You will need your National Insurance number, details of your income/savings, and your bank account information. 

• Pension Credit Claim line: 0800 99 1234

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Workplace pensions

While the State Pension provides a guaranteed safety net, £12,500  a year is likely far too little for a comfortable retirement.

Creating the lifestyle you dream of after you stop working may require a second stream of income. 

For most people, this comes from their workplace pension, which is arguably the most powerful savings tool available to UK employees. When you pay in, your employer has to pay in too.

Read our next guide and get a better understanding of workplace pensions.

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What are the biggest companies in India by market cap?

This list ranks the biggest public companies in the Indian market by market capitalisation. We’ll also highlight other key figures, such as revenue, gross profit, and 1-year return. Key facts like the company's exchange, founding year, and country are also covered.

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1. Reliance Industries Ltd. (RELIANCE)

• Market cap: $209.8 billion
• Revenue: $108.41 billion
• Gross profit: $29.94 billion
• 1-yr return: -10.23%
• Exchange: NSE
• Year founded: 1957
• Country: India

India’s largest and most valuable company, a globally reaching conglomerate with influence spanning energy, tech and consumer services. 

• Oil-to-chemicals: This is Reliance’s core and most profitable division. It operates the world’s largest single-location oil refinery, and produces everything from transportation fuel to plastics, providing huge streams of cashflow to other areas of the business. 
• Reliance Retail: India’s largest retailer with over 18,000 stores across the country, supplying its customers with groceries, electronics and fashion.
• Jio Platforms (digital services): The largest mobile network operator in India with over 450 million subscribers, offering telecoms, streaming services (JioCinema), payment apps, and other online services. 

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2. HDFC Bank (HDFCBANK)

• Market cap: $163.47 billion
• Revenue: $54.83 billion
• Gross profit: N/A
• 1-yr return: +8.76%
• Exchange: NSE
• Year founded: 1994
• Country: India

India’s largest private-sector bank by assets, operating a broad spectrum of banking services with a strong focus on both individual consumers and large corporations. 

• Retail banking: serves over 80 million customers across India with current and savings accounts, personal, car and business loans, and credit cards. 
• Wholesale banking: provides medium and large-sized businesses, corporations and institutional clients with capital loans, trade finance, cash management solutions, and investment banking services.
• HDFC merger: HDFC Bank merged with HDFC Ltd. — India’s largest housing finance company — in 2023. This gave HDFC Bank a massive book of home loans, making it a leader in the mortgage market.

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3. Bharti Airtel Ltd. (BHARTIARTL)

• Market cap: $122.05 billion
• Revenue: $20.87 billion
• Gross profit: $8.28 billion
• 1-yr return: +9.59%
• Exchange: NSE
• Year founded: 1995
• Country: India

One of the world’s leading telecommunications companies, with a significant presence across South Asia and Africa. In the Indian market, Airtel is a key rival of Reliance Jio, in mobile, broadband and digital services. 

• Airtel India: serves over 300 million subscribers with mobile services, broadband, digital TV and payment services through their ‘Thanks’ app. 
• Airtel Africa: leading telecom and money provider across 14 countries in Africa, providing mobile and data services, alongside mobile payments that allow users to transfer money, pay bills, and access other financial services. 

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4. Tata Consultancy Services Ltd. (TCS)

• Market cap: $117.99 billion
• Revenue: $28.81 billion
• Gross profit: $9.1 billion
• 1-yr return: -32.62%
• Exchange: NSE
• Year founded: 1968
• Country: India

A huge IT services and consulting company, part of the huge Tata Group multinational conglomerate. They rival big firms like Accenture and IBM as a global tech services leader.

• IT services and consulting: providing a range of tech solutions to multinational corporations globally, with their cloud infrastructure, cybersecurity, data and analytics and bespoke software development.
• Business and industry solutions: specialises in tailored industry-specific solutions, particularly within banking and financial services, and insurance — this is their largest source of revenue. They also have clients within retail, manufacturing and healthcare, helping them manage core processes like supply chain and customer relations. 

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5. ICICI Bank Ltd. (ICICI)

• Market cap: $108.28 billion
• Revenue: $32.98 billion
• Gross profit: N/A
• 1-yr return: +4.33%
• Exchange: NSE
• Year founded: 1955
• Country: India

One of India’s largest private-sector banks and a key player in the country’s financial system. A key competitor of HDFC Bank and the State Bank of India.

• Retail banking: provides millions of customers with current accounts, savings accounts, personal loans, mortgages, and credit cards. It has a strong digital product presence from its iMobile Pay app, that provides a wide array of payment and banking services.
• Corporate and institutional banking: Provides financial solutions to businesses of all sizes, including working capital finance, and term loans, alongside cash management and trade finance services to aid business operations. 

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6. State Bank of India (SBIN)

• Market cap: $90.5 billion
• Revenue: $74.06 billion
• Gross profit: N/A
• 1-yr return: +8.8%
• Exchange: NSE
• Year founded: 1921
• Country: India

India's largest public-sector bank and a cornerstone of the nation's financial system. With its unparalleled reach across the country, it is a dominant force in both retail and corporate banking.

• Retail banking: Serves a massive customer base of over 450 million people through an extensive network of more than 22,000 branches. It is a leader in personal banking, offering services from basic savings accounts and home loans to wealth management, and operates the popular YONO digital banking app.
• Corporate banking and treasury: Acts as the primary banker to many of India's largest corporations and state-owned enterprises, providing project finance, working capital loans, and treasury services. Due to its government ownership, it plays a key role in financing national infrastructure and industrial projects.

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7. Bajaj Finance Ltd. (BAJFINANCE)

• Market cap: $69.45 billion
• Revenue: $7.75 billion
• Gross profit: $4.88 billion
• 1-yr return: +28.96%
• Exchange: NSE
• Year founded: 1987
• Country: India

One of India's largest and most diversified non-banking financial companies (NBFCs). A leader in consumer finance, it is renowned for its rapid growth and use of technology to provide instant loans to millions of customers.

• Consumer lending: This is the company's core business, offering a vast array of financing options directly to consumers. It is a dominant player in providing instant loans for electronics, home appliances, and furniture at thousands of retail stores, as well as offering personal loans and credit cards.
• SME and commercial lending: Provides a range of financial solutions to small and medium-sized enterprises (SMEs) and commercial clients, including working capital loans and financing for business expansion. It also has a significant presence in lending to real estate developers. 

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8. Infosys Ltd. (INFY)

• Market cap: $67.31 billion
• Revenue: $18.34 billion
• Gross profit: $5.69 billion
• 1-yr return: -23.31%
• Exchange: NSE
• Year founded: 1981
• Country: India

A global leader in IT services and consulting, and one of the most prominent technology companies to emerge from India. It is a major competitor to other IT giants like TCS, Wipro, and Accenture.

• Digital services and consulting: Focuses on helping large businesses modernise their technology through "digital transformation." This includes moving clients to the cloud, implementing AI and data analytics solutions, and enhancing cybersecurity.
• Core enterprise services: Manages the foundational IT operations for its global clients. This involves application development and maintenance, modernising legacy systems, and outsourcing business processes to improve efficiency.

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9. Hindustan Unilever Ltd. (HINDUNILVR)

• Market cap: $66.07 billion
• Revenue: $7.07 billion
• Gross profit: $3.16 billion
• 1-yr return: -15.17%
• Exchange: NSE
• Year founded: 1956
• Country: India

India's largest Fast-Moving Consumer Goods (FMCG) company and a subsidiary of the British multinational, Unilever. Its products are a household staple, reaching nine out of ten Indian homes.

• Home and personal care: This is HUL's largest division, encompassing a vast portfolio of iconic brands. It includes soaps and skincare (Lifebuoy, Lux, Dove), laundry detergents (Surf Excel, Rin), and surface cleaners (Vim).
• Foods and refreshment: HUL is a major player in India's food and beverage market. Key brands include Brooke Bond and Lipton teas, Bru coffee, Knorr soups and noodles, and Kwality Wall's ice cream.

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10. Life Insurance Corp. of India (LICI)

• Market cap: $63.7 billion
• Revenue: $101.18 billion
• Gross profit: N/A
• 1-yr return: -11.9%
• Exchange: NSE
• Year founded: 1956
• Country: India

India's largest state-owned life insurer and a dominant force in the country's insurance sector. As a household name, it is one of the biggest institutional investors in the Indian stock market.

• Insurance and pension plans: This is LIC's core business, offering a vast range of life insurance policies, annuities, and pension plans to millions of individual customers. It operates through an extensive network of over a million agents, giving it enormous reach into both urban and rural India.
• Investment operations: LIC manages a colossal investment portfolio, making it a cornerstone of the Indian economy. It invests the premiums collected from policyholders into government securities and equities, making it one of the largest single investors in many Indian companies.

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What are the biggest companies by total annual revenue?

• Reliance Industries Ltd.: $108.41 billion 
• Life Insurance Corp. of India: $101.18 billion 
• Indian Oil Corp Ltd.: $85.38 billion 
• State Bank of India: $74.06 billion 
• Oil & Natural Gas Corp. Ltd.: $69.03 billion

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What are the biggest companies by workforce?

• Tata Consultancy Services Ltd.: 607,980
• Quess Corp. Ltd.: 441,150 
• Larsen & Toubro Ltd.: 412,970
• Infosys Ltd.: 323,580 
• Petrobras: 236,230

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Summary

Understanding a company's performance is crucial; it's how you truly know what you own. These metrics directly drive the value of your stocks and funds. When you understand these key drivers, you can navigate market changes with confidence, rather than just reacting to headlines.

Next we’ll be looking at the biggest companies in Europe by market cap.

All market data sourced from TradingView and company reports as of 30.09.2025.