Investing for beginners: what you need to know

Why should you invest?

Most people invest because it gives their money the chance to grow. That’s because investing your money gives you the potential for higher returns than if you were to save it in a standard savings account. Your money is generally secure in a bank or building society, whereas there are risks involved with investing.

The longer you leave your money invested, the more likely it is to grow. This is because each year you have the opportunity to achieve growth, not only on the money you’ve invested, but also on the growth you may have already experienced. This effect of growth on growth is called ‘compounding’ and it can help to build up the final value of your investments.