When saving funds, many concerns can arise. For instance, do you put these funds in a savings or investment account? What’s right for you, and how can you decide?
Should you invest or save?
When considering whether to invest or save your funds, there are key factors to consider. Factors such as accessibility, profitability, risk, and goals are some of the primary concerns. Whether you should choose to invest or put your funds in a savings account will depend on what factors are most significant to you.
Accessibility to funds
Withdrawing funds can take longer with an investment account. Here’s how you can withdraw from Neo Invest.
Your High-Interest Savings account or Everyday Spending account allows you to send or receive an EFT if you need to access your funds. Here’s more about the High-Interest Savings account.
Withdrawals from your Money account typically take 1-5 business days, whereas withdrawals from your Neo Invest™️ account can take up to 8 business days.
The High-Interest Savings account offers interest based on a specific rate. It is low-risk and even if the rate falls, you will still receive some interest. Investments can be riskier with its highs and lows. Knowing when to withdraw can be key to gaining from your investments. Your investments are not based on a specific interest rate so it is possible to gain more than what is offered with the High-Interest Savings account.
You will be asked for your risk tolerance when opening a Neo Invest account. Your funds in your Neo Invest are subject to market fluctuations. You do get to choose your level of risk, but with a savings account you don’t need to be as concerned with risks.
Long term or short-term
If you need to save for a short-term goal, it is typically advised that you save your funds rather than invest them. This ties into the accessibility of funds but also the return.
Short-term investments can be riskier than long-term ones, and with a savings account you can avoid these risks.
How to start saving or investing
Not sure if you’re eligible? Here’s our eligibility requirements.