Why should you Save or Invest?.

Why Should You Save?

People usually save for a specific reason—whether it's for a big purchase, a holiday, or just for peace of mind. Saving is the safest way to build up money, especially if you’re risk-averse. While it doesn't offer high returns, it does provide stability. The most you'll earn is the interest added to your account.

Most savings accounts offer easy access or are fixed for a set term. However, it’s important to be aware of inflation. If inflation is higher than your interest rate, your savings could lose value over time.

When choosing a savings account, make sure it’s covered by the Financial Services Compensation Scheme (FSCS). This protects your money (up to a certain limit) if the bank or institution fails.

In general, saving helps you:

• Afford larger purchases (e.g. a fridge, school fees, holidays)
• Prepare for expensive times of year (like Christmas)
• Build a financial safety net for emergencies or unexpected costs

Why Should You Invest?

Investing allows your money to grow over time—potentially outpacing inflation and increasing in value. It comes with more risk than saving, but also greater potential rewards due to compounding and the risk-return trade-off.

Even small investments can grow significantly in the long run with a good strategy. It’s wise to speak to a financial adviser before getting started to make sure you're investing in a way that suits your goals and risk tolerance.

Where Can You Put Your Money?

There are many different types of saving and investment products available, each with its own level of risk and return. To learn more, check out the ‘Where can I put my money?’ section.