Key learning points

1. Ways to save are instant access, notice accounts and Cash ISAs, each with different interest rates and accessibility.
2. Being a critical consumer helps people avoid impulse purchases and maximise savings through better interest rates.
3. The Monetary Policy Committee (MPC) sets the Bank of England base rate, influencing savings, borrowing and inflation.
4. Investments like stocks, bonds, funds, property, commodities and cryptocurrency generate returns but all carry risks.
5. Investments like stocks offer greater returns, while funds provide stable growth for risk-averse investors.

Keywords

• Interest - the money paid by a borrower to a lender for using their money; it’s usually expressed as a percentage of the amount borrowed or saved

• Invest - putting money into something, like stocks, property or a business, with the aim of making a profit

• Investment - the money used to buy assets like shares or property, hoping they will increase in value

• Risk - the chance of losing money or not getting the expected return

Common misconception