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Saving and Investing

Score for Skipton Building Society

Everyone has a different plan for the future. Some of you might be thinking about the next two years, others the next twenty. Whatever you have in mind for you and your money, it’s important that your savings are in the right place and working hard to help you get where you want to be. On this page, we'll help you decide when you should save, and when you may wish to consider investing.

What's right for you?

There’s no one-size-fits-all approach when it comes to making the most of your money. You have to make the best decision for you and your goals. Here’s a quick breakdown of savings vs investments.


Saving gives you a buffer in case of emergencies, and it’s also a great way to spread the cost of short term wants like going on holiday or buying a car. You can plan your savings to suit your circumstances and what you want to achieve. For instance, a fixed term bond could be a good choice if you don’t need access to your money straight away as they often have more favourable interest rates than easy access accounts. On the other hand, an easy access account is generally a good place to keep some money saved for unexpected expenses.



If your plans are a little longer term and need a bit more money behind them, you might want to consider investing. Investing offers the chance for greater returns than savings. But you do also have to factor in the risk that you could come away with less money than you put in. Like saving, investing should be personal to you – there are different levels of risk and different investment opportunities. It’s a matter of finding what you’re comfortable with.

Investment Planning

When to save or invest

Here’s a quick look at some examples of when saving, investing or a mixture may be appropriate for you.

What do you want to do with your money? Save or Invest?
Cover unexpected expenses (e.g. job loss, broken washing machine) Save – build an emergency fund to give you peace of mind
2- 5 year plans (e.g. a holiday or new car) Save – 5 years may not be enough time to see the benefits of investing and the potential benefits
5-10 year plans (e.g. home improvements or kids’ tuition fees) Save or Invest – if you’re prepared to take some risk, investing could help you see greater returns, but having your money in savings could give you a little more certainty, however its value can be impacted by inflation
Preparing for your long term future Invest – as inflation could see the value of savings erode over time, you might want to consider taking more of a risk and investing

Saving without investing, is like bread without butter

If you're comfortable with the risks involved, investing could help you get more from your money, but its important to consider keeping some money in savings for short term expenses. A combination of both tends to be a more well-rounded approach.

How much could your money grow?

Saving alone will help you grow your money. Investing has the potential for much higher returns, but it also carries the risk that you could come away with less than you put in. When you’re deciding what to do with your money, it’s important to weigh up your wants and your needs, as well as your attitude to risk.

Savings vs Investment growth

The below example highlights the potential growth and risks of your savings or investment.

Start with lump sum of - £20,000

Aim of saving/investing for at least - 5 years

Savings value in 5 years


This includes £2,081 interest

Investment value in 5 years


Projected high


Projected average


Projected low

Text only version

How we've worked this out

Firstly, the savings value is based on a 5 Year Fixed Rate Bond paying 2.00% gross/AER assuming the interest is paid and compounded annually.

The projected investment returns are based on a medium level of risk. It is a risk and reward category for people who are neither very risk averse or who have a desire to take a very high level of risk. It’s always important you invest in a way that suits your personal feelings to risk and reward. You might prefer to take a greater or lower level of risk than this example.

The projected figures have been calculated with the help of Moody’s Analytics using current forecasts and assumptions. However, these projections are for illustrative purposes only and are not a reliable indicator of future performance – actual returns could prove to be higher or lower than these examples.

Finally, these growth figures don't factor in:

  • Any tax you might have to pay
  • The impact of any initial or ongoing charges (investments only). For more information about how much financial advice could cost, please see our advice fees
  • The potential increase or decrease in returns resulting from fund selection (investments only).

Risk and Reward

When you invest, there’s a chance you'll earn higher returns than you would by just saving. But on the other hand, there’s the risk that you could take out less than you put in. It’s not always an exact formula, but usually the higher the risk, the potential for greater reward. The key is to find a level of risk you’re comfortable with. And remember, our expert team can help you with all the information you might need.

If you’re not comfortable with the idea of risk, we could still help you grow your money. Take a look at our savings page for our latest accounts and rates.

The benefits of expert financial advice from Skipton

  • No Pressure Promise

    We’ll never pressure you into making a decision. We’ll only ever give you options, answers and the time you need.

  • In-house expertise

    We've been offering a financial advice service for over 30 years. Our expert team have are here to help you make informed decisions, so you have more time to focus on other things.

  • Low investment starting point

    Our financial advice service could be right for you if you have at least £20K available to invest or £500 on a monthly basis.

  • No obligation to act

    There is no upfront fee to hear our advice, you will only be charged if you decided to act on our recommendations.

Important Information

Our investment recommendations are likely to include stock market-based investments. These are not like bank and building society savings accounts as your capital is at risk and you may get back less than you invested. The value of your investments and any income from them may fall as well as rise.

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