What is the Difference Between Saving and Investing?

Saving and investing can sometimes go hand in hand. Its when they become intertwined that people start to lose a grasp on the differences between the two and they are synonymous terms. Whilst saving and investing are definitely related, it is important to remember they are very different.

What is saving?

In broad terms, the term saving refers to the act of putting money in a safe place with the intention of using it in the future. The UK government’s definition refers to setting money aside without risk and with the option to earn interest. Savings can siphoned into bank accounts, building society savings accounts and cash ISAs, to name a few options. It is worth remembering that people also save for a variety of reasons, including:

  • A new home
  • To go travelling
  • To fund university
  • To fund retirement
  • A new car

What is investing?

Investing refers to the act of putting money into an opportunity with the hope of making financial gain. Unlike saving, investing comes with heightened levels of risk, however there are different options available to suit most investors.

Investors can put their money into the likes of:

  • Stocks
  • Bonds
  • Funds
  • Property
  • Investment Trusts
  • Art and antiques

Whilst investors want their money to grow, there is a chance that invested money could decrease considerably. The risk is to be understood and accepted by investors. Investors understand that taking on risk could potentially result in them making money as opposed to losing it.

Should I save or invest?

Both saving and investing can help you reach your short, medium and long-term financial goals. Which option is best for you will likely boil down to how much risk you are willing to accept. As mentioned, investment opportunities have more associated risk compared to savings accounts.

If you are unsure as to what action you should take with your money, we would highly recommend you consult an independent financial advisor prior to make an investment decisions.

Bear in mind

Wellesley Property Bond

  • The Wellesley Property Bond has a fixed rate and duration.
  • The Wellesley Property Bond is an ISA eligible investment, allowing you to earn tax free interest on your investment. Please note, tax allowances and the tax efficient benefit of ISAs could change in the future.

Your capital is at risk and interest payments are not guaranteed. Investment in any Wellesley Property Bonds are not covered by the Financial Services Compensation Scheme (FSCS). In the event of a loan default or if Wellesley Secured Finance Plc becomes insolvent, you may lose some or all of your investment, including interest payments due. If you are in any doubt about making an investment or do not fully understand the risks, you are strongly recommended to consult an independent professional financial adviser before you subscribe.

Wellesley is the singular name for the following collective of companies, Wellesley Group Limited (09811856), Wellesley & Co Limited (07981279) and Wellesley Finance Plc (08331511). Wellesley Secured Finance Plc was established as a special purpose vehicle for the sole purpose of issuing asset backed securities and is not part of Wellesley Group.

The information contained in this website has been approved as a financial promotion for UK publication by Wellesley & Co Limited (FRN 631197) who is authorised and regulated by the Financial Conduct Authority (FCA). Wellesley Property Bonds are issued by Wellesley Secured Finance Plc (the Issuer) and is not authorised or regulated by the FCA.

Wellesley & Co Limited and Wellesley Finance Plc are registered in England and Wales and their registered office and trading address is at St Albans House, 57/59 Haymarket, London SW1Y 4QX. The registered address for Wellesley Secured Finance Plc is at 1 Bartholomew Lane, London, EC2N 2AX.


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