Opentrain Share Tips
Frequently Asked Questions
Why not just keep my money in a
deposit account?Deposit accounts may not carry any of the risks involved in bonds or shares but that does not mean they are risk-free. There is always the danger that inflation will eat into the value of your savings. Your real return – the amount of interest you earn above inflation – can be a very small margin. If your account pays 5% but inflation is running at 2%, you are only making 3% in real terms. A small rise in inflation or a slight drop in interest rates could make a significant dent in your returns.
If your savings are taxed, that real return of 3% will be reduced even further. For a basic-rate taxpayer the result would be a real return of just 2%.
Introduction
tutorial for the individual self-investor. Useful hints and tips
beginning your first venture into trusts / shares.
www.opentrain.co.uk/sharetips. Share tips, share tutorials,
introduction to investing in shares and funds