SQUIRRELLING money away in the bank or building society makes great sense for all of us. Provided you pick the right account, you can earn a decent rate of interest while you have the comfort of a financial buffer which can be used to meet any unexpected financial emergency. And of course, your capital is not at risk.
However, putting money away in a savings account is not going to look after your long-term financial future. Unless you have your money in an account paying an attractive rate of interest, there is every chance that the value of your savings could fall in real returns because of the effects of inflation. In other words, the value of your accumulated deposit savings is worth less to you than to begin with.
For people interested in savings for the long term, they need to complement deposit savings with investments where the rewards - and risks are potentially higher. One such investment is shares.
Shares are issued by companies to raise money. When you buy shares in a company, you become a part-owner and you share in its profits by means of dividend distributions. If it doesn't make profits, you don't get dividends. As an owner, you are also entitled to a share of the company's assets if it is wound up in the future. You are also invited to shareholder meetings.
Shares are not similar, as they fall into two broad churches. Church 1, the ordinary share, is the most popular. These are issued by more than 2,000 companies. Church 2, comprises overseas equities, which ordinary shares issued by non-UK companies. Most people buy ordinary shares in UK companies simply beacuse it is easier to do so and also because they are familiar with the businesses behind the shares.
Share dealing online with Seek4finance.co.uk lets you buy shares online, sell and trade shares online through our online share dealing service, provided by MoneySupermarket.com. |
A-Z Financial Services
Compare Share Dealing Accounts