ISA & INVESTMENT

Investing The Right Way

Over the long term, investing money in the stock market should produce far greater returns than you’ll get from even the best savings accounts.

Where you should invest depends on why you are investing, over how long and the amount of risk you are willing to take. 

It is best to have a clear understanding of what you are actually saving the money for. If your aim is to build up emergency funds or you’re saving for something specific and expect to spend the money within the next three to five years, savings accounts and cash individual savings accounts (Isas) are probably the best way to go.

You should aim to make regular deposits into a cash Isa, where all interest will be paid tax-free.

The golden rule is the same however much you invest: make sure you don’t bite off more risk than you can chew.

If you can invest for five to 10 years or more and sleep soundly through potential downturns along the way, then the stock market is generally a good place to start for long-term investing.