Zach and Julie are partners working for a waste recycling company. They are aged 37 and 35 respectively and are basic rate taxpayers each earning £34,000 per annum.

They have no children and no plans to marry. However, they recently felt that their relationship was strong enough to buy a flat together. Their outstanding mortgage is currently £55,000.

Zach and Julie have sufficient money to start making regular savings for long-term capital growth. They want to be able to maximise tax-free allowances where possible. They would also like to investigate the merits and pitfalls of OEICs and life assurance investment bonds.

Prior to meeting Zach, Julie had accumulated £5,000 worth of premium bonds which she has retained. She wants to know what likely returns she can expect from these over the longer term.