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Is the fear of investing losing you money?

Investing shouldn’t be scary. Even if you feel a bit baffled just thinking about stocks and shares. In fact, once you look past all that, it can be a great way to potentially get more from your money. In comparison, cash savings may seem simple and secure. But with interest rates at an all-time low, and not keeping pace with inflation, cash has effectively lost long-term savers money. Our new research with the Centre for Economics and Business Research, written in September 2018, reveals that over the past 19 years cash savers have missed out on £127 billion in additional returns – now that really is scary! So maybe it's time to face your fear.

What's holding you back?

I'm worried about losing money

You're not alone. 22% of people surveyed said they wouldn't consider investing because they're afraid of losing money.

But this fear of losing money might actually be losing you money. How's that for irony!


Reasons for not having a stocks & shares ISA  (Source: 3Gem, Cebr analysis)


Given current interest rates (over the last 19 years), those saving for the longer term are likely to have seen a decrease in the value of their money by saving in a cash ISA. This is because their savings haven’t kept pace with inflation, so people are effectively losing money.

So if you’re one of the many people saving for the future e.g. retirement or kids, according to our research you could be better off if you invest rather than save in cash.

Do bear in mind that the value of investments can go up and down in line with the stock markets. So Investment ISAs are normally considered long-term investments – of at least 5 years – to balance out any short-term highs or lows.

It's too complicated

Half of the people we asked said they didn't feel confident enough to start investing because they think it's all too complicated. Sound familiar?

Finding the time to understand how it all works can feel like a major barrier to getting started - after all, juggling household finances is complicated enough already.

That's why we've made it easier to find a fund that fits you. We offer a selection of just 9 funds to invest in, with a clear level of risk and reward.

As simple as it gets – invest in one, expertly managed fund with a guaranteed return if you invest for 10 years. Terms apply.

If you’re looking for more control, with a choice of funds and flexible payment options, this option could be for you.

Considering investing for your child’s future? Try a selection of funds in one simple ISA that anyone can contribute to.

I can't afford it

Many people we asked felt they needed more cash savings as security before they would think about investing.

Which means the idea of saving and investing at the same time could seem very unaffordable. Especially when pin-stripe suits and big-money deals are often the first things that come to mind when we hear 'investing'.

But we believe investing should be accessible to everyone - pin-stripe suit or not.

Our Investment ISAs start from as little as £10 a month, or a £100 lump sum.

You can stop and restart payments at any time – handy if you need a little wiggle room in your finances for a while.

Plus, investing in an ISA is tax efficient, so you’re already benefitting by putting something away in one.

I might need to access my money

34% of people said that they were saving for a rainy day - a bit of extra, financial security in case something unexpected comes up.

So if you're worried that having your money tied up in investments means you can't get to it in a hurry, don't be.

Our Investment ISAs let you access your money whenever you need it. Please bear in mind depending on the Investment product there may be an exit penalty. Making a withdrawal may take you longer to reach your investment goals.

With our My Plans app and online services, you can be hands-on with your investment and access your money at any time.

And if that rainy day never comes around, having your money in an Investment ISA means you'll just keep benefitting from the long-term growth potential of stock markets.

Learn more about ISAs

Learn all about ISA limits and the different kinds available, and what might be right for you.

If you're investing for your child, a Junior ISA is a tax-efficient way of saving and investing for their future.

Not sure where to start, or how to find the money to save or invest? Our guide takes you through some options available.

Need help?

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