Introduction To Savings & Investments

There are lots of reasons to save, perhaps for some ‘rainy day’ money to fall back on if
something unexpected happens, or maybe for a specific item like a holiday, a car or to pay
for your children’s education or wedding.

Whatever the reason, getting the savings bug early is a great first step for a sound financial
future for you and your family.

Of course, you can put your money under the mattress but, as the price of goods and
services and the cost of living increases, the real value of your money, i.e. what you can
buy with it, will actually go down. And, obviously, it’s not a very safe place for your cash!

Using a savings or investment account will keep your money safe and, not only that, your
hard earned cash will also start working for you.

With most savings accounts, your savings pot increases by the addition of ‘interest’. You
will be quoted a percentage % rate of interest, and this is how much will be added to your
account each year. The % rate can be fixed for a time, or it can be ‘variable’ which means it
can change.

Some longer term investments may invest in ‘assets’ like company shares and property that
can go up and down in value. The money you earn on an investment of this kind is known
as ‘investment return’, and reflects how much the assets you are investing in have gone up
or down in value.

The value of investments and the income they produce can fall as well as rise. You may get back less than you invested.

Tax treatment varies according to individual circumstances and is subject to change.