Savings & Investments
Why Save?
People often save with a specific goal in mind, and it’s typically the safest way to build up a financial reserve. While saving is less risky than investing, it also offers limited growth. The primary return on your savings comes from the interest earned. Saving is ideal for those who prefer not to take any risks with their money, and most savings accounts offer either easy access or fixed terms.
There are various ways to save, but the goal is the same: to accumulate funds that can be used for significant expenses—whether it’s buying a new appliance, going on holiday, paying school fees, or covering costly periods like Christmas. Additionally, savings provide financial security by ensuring you have money set aside for emergencies or unexpected costs.
Where Can I Put My Money?
There are several types of savings products available, each with its own features. The links in this section will guide you through your options.
What’s the Difference Between Saving and Investing?
Saving is the first step toward investing. You can’t be an investor without first being a saver, but you can be a saver without becoming an investor.
When we talk about saving, it could mean anything from a piggy bank on the mantelpiece to a high-interest deposit account. Savings typically refer to cash or cash-equivalent instruments, such as deposit accounts or term bonds.
Investing, on the other hand, involves using your savings to potentially generate a higher return than what’s available through standard savings products. As a saver, you take minimal risks with your money. As an investor, however, you face greater risks—the returns are not guaranteed, and your capital is also at risk.
So why take those risks? The answer lies in the potential for higher rewards. Investing offers the opportunity to grow your money beyond what a traditional bank or building society deposit account can offer.
What Should I Do Now?
With so many savings and investment options available—and given the inherent risks, especially with investments—it’s wise to seek expert advice tailored to your specific circumstances.
What are the risks?
The value of investments and the income they generate can go down as well as up. You may get back less than you invested.
Tax treatment depends on individual circumstances and may change over time.