Savings Vs Investments – Which Offers A Better Return?



If you have recently accumulated or received a lump sum, such as from an inheritance, dividend or company bonus, knowing whether to save or invest it can be challenging. At D&G Independent, we offer impartial advice based on your circumstances and attitude to risk, but it is worth noting the value of both options so you can gain a clearer understanding of how each can benefit your long-term finances.


Saving your money in account with a bank or building society is a safe way to build up your finances, especially if you have a specific purchase in mind. If you want to buy something within the next one to two years, such as a new car or holiday, a savings account is ideal. If you need to save for a deposit on a house, medium-term savings plans of over five years are also very useful.


During times of economic uncertainty, the interest rates on savings accounts may not be favourable but you won’t be required to take an enormous risk if you simply want a steady rate of growth. It is also highly advisable to set up an emergency savings fund so you can prepare for the unexpected. The industry typically recommends putting aside the equivalent of three months’ living expenses and maintaining this as a safety net for the future.


If you are less risk averse or you wish to grow your finances over a longer period, something more long-term, a diverse investment portfolio may be more appropriate for your needs. Investments in stocks, shares and property aim to grow your shares over time. There is an element of risk associated with investments but your portfolio can be aligned with your own personal circumstances and goals. If you invest over a longer term, you are more likely to see a greater return and diversifying your portfolio could potentially reduce any potential risks further. For peace of mind, throughout the lifetime of your investment, a fund manager will oversee and manage the investment to ensure the best possible return based on fluctuations in the economy.


If you would like to review your financial goals, our experienced independent financial advisers are here to offer impartial advice. We can access the whole market to help you plan for your future and identify the best strategy for you and your needs. Call 01352 754272 to arrange a free, no obligation consultation with D&G Independent.


It is always advisable to pay off any debts before starting to save.

Investments can go down as well as up and you may not get back the original amount invested.





D&G Independent Limited is authorised and regulated by the Financial Conduct Authority, No 585148.
D&G Independent Limited, Park House, Ffordd Byrnwr Gwair, Broncoed Business Park, Mold, Flintshire CH7 1FQ
T: 01352 754272 |

Copyright © 2018 - D&G Independent Limited  | Privacy Policy





T: 01352 754272