We all want to set money aside for our future needs. However, very low interest rates mean that cash savings alone may no longer be enough. To have the chance to earn the returns you need for a brighter tomorrow, consider taking the step from saver to investor today.
Saving vs. Investing
Cash-based savings accounts can be used for short-term goals, such as establishing a rainy day fund to cover at least three to six months of outgoings, or paying down credit card debt.
Cash savings offer lower potential to grow your savings than investing but are considered lower risk and make it easier to access your money.
Investing in the markets can be used for long-term goals, such as retirement planning or saving for your children’s education.
Investing offers higher potential returns than cash savings, but there is more risk because of the market’s ups and downs, and you could get back less than you invest.
Getting started with investing