Savings are predictable, dependable and easy to access. 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 NatWest 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.