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Investment Advice

Savings & Investment

When planning your finances, it is important to distinguish the difference between savings and investments. Savings are generally funds that you set aside, but can be accessed relatively quickly. These savings are often for a specific need or purchase, like a holiday or a new car. The most common way of ‘saving’ is into a bank account (‘deposit’ account) where the money can be accessed in an emergency.

Investments are designed to be held for a longer term, usually at least 5 years. You need to be comfortable with tying up this money for a period of time, and should not consider investments unless you have some savings in place. Most investments are not guaranteed to return your money in full, although do offer the prospect of potentially higher returns than deposit accounts. Returns, risk and volatility are the factors that will determine a suitable place for your savings.

Savings and Investment products range from a simple current account, which allows a small amount of interest, but facilitates regular payments and withdrawals without detriment to your savings. At the opposite end of the scale would be company shares, where you invest money in a company, with the prospect that the company will prosper and the shares will increase in value over time. Whilst the benefits are potentially high, the risks are also much greater.

Many people use the ‘middle ground’ of investment structures such as Investment Individual Savings Accounts (Investment ISA’s), Unit Trusts or Investment Bonds or other investment structures.

The amount of growth, income and risk will be decided by the approach taken with the investment. For instance a wide range of investment funds across different areas such as gilts, corporate bonds, commercial property and shares will tend to reduce the risk of an investment whilst allowing the prospect of capital growth over time.

We will always consider risk and timescales as important factors in advising you. Your tax position is also fundamental in any recommendations we make regarding investment advice.


The Financial Conduct Authority does not regulate deposit accounts.