Savings and investments range from everyday bank deposit accounts to more complex financial products designed to deliver high returns. But all savings and investment options have a simple aim: to protect, and if possible grow, the value of money invested in them.
Most savings accounts will offer you a fixed rate of interest. Usually, this rate depends on your account’s balance and how much notice is needed before you can make a withdrawal.
If you invest, you’re probably aiming for better returns than you would receive from a savings account. Unit-linked investments can benefit from capital growth which refers to a growth over time in the value of the shares which underpin this type of investment.
It’s always important to remember that the value of investments can fall as well as rise. That’s because their value depends on how well whatever they have invested in has performed. The exception is government bonds whose value is guaranteed by the state.
If you’re choosing whether to save, invest or do both, you should consider three important things: your current financial situation, your future goals and your appetite for risk. Having a no-obligation chat with an Ask Acorn financial advisor will help you learn how we can help protect and grow your wealth.