Savings and Investments play an important role in financial planning.

Savings are generally deposit accounts with a Bank or Building Society. Your capital will receive interest on an ongoing basis and you have access to the monies at the given notice period, for example instant access. Savings are generally used as a cash reserve to cover any unforeseen circumstances or a specific purpose such as holiday or the purchase of a new car. Investments tend to be a longer-term option involving some degree of risk to your capital.

It is very important in any plan that savings are dealt with first and foremost and only once an agreed level of savings is reached would one consider investing for the longer term.