Starting to save and invest

If serious saving doesn’t come naturally to you, here’s a quick primer to start you off.

What’s the difference between saving and investing?

These terms can be confusing, as they’re often used interchangeably. However, ‘savings’ is commonly used to mean ‘cash deposited to a bank’, while ‘investments’ usually implies higher-risk products such as stocks and shares or bonds. But the definition isn’t clear cut in fact.

Types of savings

Cash savings are low risk but relatively unexciting. Your basic options are these:

  • Savings Account
    Most banks offer a variety of savings accounts, and if you shop around you can often find a good rate of interest especially if you’re a new customer.
  • Time Deposit
    Time Deposit accounts are just savings accounts that pay higher interest rate with a fixed locking period.

How your savings allocate

A Private Wealth Manager can talk you through all your options and help you put together a savings plan to fit your needs. Find a PWM here.

Questions to ask your financial advisor:

  • What should I be looking for apart from the best interest rates?
  • How should I be saving if I have a particular goal in mind?
  • Should I be using a variety of savings types?
  • Are my savings guaranteed if my bank goes under?