Your money, your choices: could investing be a better option than saving?

When interest rates are at low levels, it can be difficult to see the point of saving, particularly when inflation remains the higher figure. Although the Bank of England nudged up the basic rate to 0.75% last year, it was just the second rise in over a decade.

For some, moving away from the world of savings into a new world of investing in stocks and shares can be daunting. Jo Richings, 50, a business coach, author and speaker from Bristol, says she’s keen to invest but is flummoxed by the options available, and she admits she doesn’t have the time to spend researching the alternatives.

“At the moment, half of my savings are in the bank and the other half is held in premium bonds, so there’s no interest being made,” she says. “I’m quite risk-averse when it comes to stocks and shares, and don’t know much about what to invest in. I know I need to do more but I haven’t got the patience for it.”

However, the current economic climate means it’s more important than ever to take a long-term view on our financial futures, whether it’s saving for – and then living through – retirement, or simply making sure loved ones are taken care of, argues James Hewitson, Head of Wealth and Advice at HSBC. But, he notes, many people think investing is not for them because they believe they are not wealthy enough.

“This comes from a common misconception that you need a lot of spare cash to start investing,” he says. “Others simply don’t know where to begin and even if they look into investing themselves they encounter technical jargon – which is a major turn off.”

HSBC is taking steps to help its 38 million customers worldwide manage their day-to-day finances and save for the future. The bank aims to break down those barriers stopping people from investing and instead provide a wide range of modern and accessible tools with 24/7 help whenever customers want and need it. These include My Investment, where customers can create and access tailored investment advice starting with £1,000, in just a few minutes, and InvestDirect, an easy-to-use system with access to a range of shares and tools to help the selection process. For those not sure if they are ready to invest, the bank has a try-before-you-buy function, allowing consumers to gain confidence by road testing the stocks and shares market as a virtual investor before deciding to go ahead.

These financial planning and investment services are available to many millions of customers, from those who are starting out with a few hundred pounds to put away for a rainy day, right up to people who are ready to retire and want to know how best to invest their pension pots.

“As our services are one part of a customer’s broader banking relationship, we can provide help and support on all aspects of a customer’s financial life – not just savings and investments,” says Hewitson.

Plan for the future

• Look beyond current accounts to help your savings grow – no matter how small.

• Engage with your financial life to understand where your money is being spent – there are many useful tools and apps that could help with this.

• Identify your financial goals to create a road map to achieve them.

• Explore the advice options available to you, to understand the costs and benefits.

• Assess your risk profile to understand the right products to start saving or investing in. Consulting a good financial adviser will help you with this.

Investments can carry a higher risk than cash savings and you may not always get back what you put in. Most investments should be considered as a medium- to long-term commitment, meaning you should be prepared to hold them for at least five years. HSBC My Investment and InvestDirect are available to HSBC current account holders.

Whatever your situation and no matter your level of confidence, HSBC UK could help you make better-informed investment decisions. From first-timer to experienced investor, wherever you are in your investment journey HSBC could help you take that next step towards achieving your goals.

Eligibility criteria and fees apply.