What's the difference between saving and investing?
We all know itʼs a good idea to put some money away for a rainy day, but do we know the pros and cons to saving and investing? If youʼre saving for something in the short term (generally seen as less than five years), then a traditional savings account could be the way to go. Your money is largely secure with easy access, but over the long term inflation could eat away at the value of your savings.
An investment in its simplest form is when you buy something with the hope and expectation of it increasing in value. An example of a good investment would have been the purchase of a Central London house in 1980 for £100,000. That house would now be worth over £1.5 million, and a percentage increase of over 1400% which is over 15 times more than the original purchase price.
Ready to start investing?
There are a few things you might want to consider before jumping in. Have a look at our Stocks & shares ISA page to find out more.
Build up your cash savings and earn tax-free interest on your money
If you've used up your yearly ISA allowance and want to invest more