We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Risk and No Risk?

When i look at saving accounts online and people say do you want to risk your money or not... what do they mean by this?


Thanks.

Comments

  • dunstonh
    dunstonh Posts: 120,185 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It has more to do with investing than saving. There is a sliding scale of risk whenever you invest. There is even a risk with savings accounts (inflation and financial strength).

    Whenever you invest, you should only do so within your personal risk profile. Not anyone elses. As everyone is different, finding out what someone's risk profile is before you invest is common sense and in the case of advisers, a requirement.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • dparky
    dparky Posts: 33 Forumite
    Can you lose money when saving or investing? I always thought it meant that.
  • dunstonh
    dunstonh Posts: 120,185 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You cannot physically lose money with savings but you do run the risk of not keeping up with inflation. That in itself is a form of risk.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • steady__eddie
    steady__eddie Posts: 1,455 Forumite
    Part of the Furniture Combo Breaker Uniform Washer
    Could dparky be refering to financial institutions going bump ?
    I realise that this may be unlikely (even though we are told that mortgage borrowing as just exceeded 1 trillion) and the last time that I heard of a Bldg. Soc. having liquidity probs was Town & Country and then the rest of the lads gathered round and bailed them out, but as I understand it as far as savings are concerned (as distinct from investments) the first £2k of savings are safe. 90% of the next £33k are safe meaning that out of £35k, you would be guaranteed £31700/institution. Anything above £35k is gorn.
    This info. is taken from http://forums.moneysavingexpert.com/showthread.html?t=132760&highlight=%A335000
  • Chrismaths
    Chrismaths Posts: 931 Forumite
    But if we're going to that sort of level, then there's also the chance the FSCS could collapse, not paying out the £31,700... That's the point, a guarantee is only as good as the guarantor.
    I'm an Investment Manager. Any comments I make on this board should be not be construed as advice, and are for general information purposes only.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.1K Banking & Borrowing
  • 253.5K Reduce Debt & Boost Income
  • 454.2K Spending & Discounts
  • 245.1K Work, Benefits & Business
  • 600.7K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 258.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.