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Should I be
saving more
or investing?

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As you’ve seen, savings and investments do different jobs, and many people choose to use a mix of both rather than one or the other. Next, we’ll look at what risk means and how to choose a level that feels right for you.

Investment risk

“Investment risk” mainly means that your investment value can go down as well as up. In general, options that take more risk can move up and down more – and may offer more growth over time, but also bigger drops.

Lower risk options tend to be steadier but usually grow more slowly. So, it helps to choose an approach you can stick with, even when markets have a wobbly period.

How cash savings and investments
can behave over time

An average IA global equity fund
vs. cash savings

Historically, money invested for more than five years grows more than cash savings. However, past performance is not a guide to future returns. Source: Calculations by The Investment Association using Bank of England data on the sterling weighted rate of return on ISA cash deposits from the household sector between 2015 and 2025 and inflation adjusted returns of a typical global equity fund using IA Global sector average performance data provided by Morningstar.

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Further reading

What's the Difference Between Saving and Investing?

Wondering whether to save or invest? This guide explains the difference, how to build your savings, and the basics of planning for both short-term goals and long-term growth.