When choosing your financial strategy, it is important to understand the difference between saving and investing. If you save money on deposit with a bank or building society you will earn interest. If you buy shares or invest in a share-backed plan such as a unit trust or a life assurance policy, you will have the opportunity to earn dividend income and benefit from capital growth as the investments increase in value.
Records show that in the long term the best share investments outperform the best building society accounts in terms of the total returns they generate. However, it is important to remember that shares can go down in value as well as up, and dividend income can fluctuate.
If your portfolio of savings and investments is out of balance, you could get back less than anticipated, so you need to consider what the best mix for your investment strategy is.
Please discuss your savings and investment needs with your Personal Account Manager or click the link, contact us identifying what requirements might best suits you.