Should I save or invest?

Savings are predictable, dependable and can be held in an easy-access account which means you can access the money straight away. The money won’t fall in value. If you know you'll need a set amount of money in the next 12 months, for example, then regularly putting cash into a savings account may be the best idea. Savings will grow over time as more money is put away and interest adds up on your balance.

Savings are also a good place to keep emergency cash, as it’s instantly accessible. We recommend having four months’ worth of money in instant access savings for this purpose.

If you’re saving for a longer-term goal, say five years or more, investing your money might help it grow even more – and could help protect its value from the effects of inflation (the rising cost of living).

Our Personal Portfolio Funds via Royal Bank Invest are for the long term (though you can access it whenever you need to). The potential for returns is greater the longer you can leave your money there. The value of investments can go down as well as up so your capital (the money you put in to begin with) is at risk.

Before you begin investing, we recommend people ensure they have instant access to four months’ worth of money for essentials set aside. While you can access money from an investment account at any time, you should consider setting aside a ‘buffer’ in a savings (or current) account before you start investing.

You can put as little as £1 in your savings account every month. The minimum for investing with Royal Bank is £50 a month though other banks may vary.

But beyond that, it’s about what feels right for you and what you’re comfortable with. 

Even by starting with small amounts, this will build and you’ll see your savings balance grow. With investing, that’s much more about your own circumstances and when you’re in a position to start looking longer term.

But the earlier you start investing and the longer you keep that investment for, the better chance you have of balancing out any market fluctuations. The value of investments can go down as well as up so your capital (the money you put in to begin with) is at risk. For more on the ins and outs of investing right now, see our investment guide.

With Royal Bank of Scotland, anyone aged over 16 who is living in the UK can save. For investing, it’s anyone aged 18-84. Many people feel that investing is only for the wealthy and those with financial know-how, but that’s just not true.

There’s a range of funds that may match your appetite for risk. So, whether you’re the cautious type or more risk happy, we could have an option for you. See our range of investment options here.

Personal Portfolio Funds range on a scale from defensive to adventurous. Remember, your investment can go down as well as up , which is why we suggest investing for the longer term – giving more chance that the rises and falls in investment markets will have balanced out. 

We have a number of savings accounts to choose from and most give you instant access to your money. The exceptions are the Fixed Term Savings Account and Fixed Term ISA which restrict access to your capital for one or two years. There are other tax-free options where you can kick off your savings with just a pound.

ISA stands for Individual Savings Account.  ISAs are a tax-efficient way to save or invest. You do not have to pay UK tax on any interest or returns your ISA earns.  The government sets a limit on the amount you can pay into ISAs each tax year.  In the current tax year, you can pay up to £20,000 into ISAs.  

There are a number of different types of ISA you can hold. Natwest offers Cash ISAs and Stocks and Shares ISAs.  A Cash ISA is a cash savings account.  A Stocks and Shares ISA is an investment account in which you can hold shares, funds and other investments.  Unlike cash, these can go down in value as well as up.

Tax reliefs referred to are those applied under current legislation, which may change. The availability and value of any tax relief will depend on your individual circumstances.

With the huge rise in coverage of cryptocurrency, we understand many customers are curious about the new currency. Yet, understandably, many people still feel confusion about what exactly it is and whether it is safe. Cryptocurrencies such as Bitcoin are digital currencies where transactions are logged on a distributed ledger. Crypto is seen as very high risk and is currently unregulated, and it’s not something we offer. 

If you are considering investing in cryptocurrency, watch out for adverts on social media advertising crypto services- always gain independent advice and do your research if you’re tempted to invest in a digital currency. 

You should always have sole control of your cryptocurrency ‘wallet’ and nobody else should have access. If you didn’t set the wallet up yourself or can’t access the money, then this is likely to be a scam. You should stop making payments right away and get in touch with us.

For more information on the scams linked to crypto and other risks read our fraud guide.

If you are choosing to invest, follow these simple steps to make sure a criminal doesn’t get their hands on your cash:

• If you are considering an investment, be sure to visit the FCA’s ScamSmart investor page before you do.
• Don’t feel pressured into making an investment if you’re unsure. A genuine company won’t push you to part with your cash.
• Be cautious of all unexpected calls, emails, and text messages. Don’t assume they’re genuine, even if the person seems to know a lot about you or your previous investments.

You can find out more about safe investment on our Security Centre