Lloyds Bank
Why save?

Why save?

Cash savings are a great way to provide financial security. Savings can help with both your short and long-term financial goals, planned spending and building an emergency fund for any unexpected expenses.

Consider saving if you:

  • want easy access to your money for specific short-term goals (5 years or less).
  • have an income but no emergency fund or safety net.
  • want a steady rate of interest and growth.
Why invest?

Why invest?

Investing is a great way of making your money work harder for the future once you've got your rainy day savings sorted, especially during periods of high inflation. Generally speaking, money invested over the longer-term can potentially provide higher returns than savings accounts, depending on interest rates and levels of risk.

Consider investing if you:

  • want the chance of receiving a higher return than you'd get by putting your money into a savings account.
  • are willing to accept an element of risk to your money.
  • want to invest for the medium to long-term (at least 5 to 10 years).

The value of investments and the income from them can fall as well as rise, and you may get back less than you invest. If you're not sure about investing, seek financial advice. There will normally be a charge for that advice.

This graph shows a comparison of savings and investments over 10 years.

Past performance is not a reliable indicator of future performance and remember that the value of investments can fall as well as rise, and you may get back less than you invest.

Investment 10 year record graph

Investments data - S&P World Index

Investments data

Source: S&P Dow Jones Indices, S&P World Index (GBP).

  • The below table is based on an initial investment value of £1,000 and held over a 10-year period between 02/01/2015 and 31/12/2024. Excludes fees and does not include any dividends or reinvestment, the effects of which may change your actual total return.
  • We have selected the S&P World Index as it provides diverse exposure to multiple developed, global markets and sectors. Prices shown are those at day close. We have calculated % growth from the first available trading day of the year (UK) to the close at the last available trading day (UK).
  • Past performance is not a reliable indicator of future performance.
Investments data table Investments data table

Total investments value as of 01/01/2025 is £2,659.71.

Savings data

Savings data

Source: MoneyFacts 12m Fixed Non ISA rates (decile 2), January 2025.

  • The savings figures shown are based on depositing £1,000 into a fixed rate savings account paying gross interest over 12 months.
  • The interest is then added to the account and re-invested each year into a series of annual fixed rate savings accounts at the rates shown.
  • The end value shows how the savings account has grown over the 10 years taking account of the annual compounded interest. This assumes no tax has been paid on the interest.
Savings data table Savings data table

Total balance as of 01/01/2025 is £1,209.36.

AER stands for Annual Equivalent Rate. It shows what the interest rate would be if your interest was paid and compounded once each year.

Gross rate means that we will not deduct tax automatically from your interest. You are responsible for paying any tax due to HM Revenue and Customs. To see more terms and definitions, view our glossary.