Saving and investing is about putting the right plans in place for your long-term goals whilst making sure you have enough money set aside to cover your day-to-day expenses and one-off payments, like holidays, and planning for any emergencies however unforeseen.
There are many ways that you can save or invest, and whilst you want your money to grow, it’s important that you think about the level of risk you might be willing to take with your hard-earned cash. You may not wish to take any risk whatsoever.
A bank or building society account may be a good home for your money, or you could open up an easy access Cash ISA (Individual Savings Account).
Investing in other assets, such as stocks and shares, government and corporate bonds or property gives you the potential to achieve better returns than money in the bank. Please note you could get back less than you paid in with this type of investment.
A fund is when investors pool their money together to buy a various range of assets such as bonds, shares and property. This can be a way of minimising the risk of losing money.
These investments do not include the same security of capital which is afforded with a deposit account.
The value of your investment can go down as well as up and you may get back less than you have invested.