Should I invest rather than save?

QWith interest rates so low at the moment, how can I start investing to earn some extra cash instead?

AFAITH SAYS Interest on savings accounts has been rubbish for many years, but investing in the stock market holds out the hope of higher returns. The drawback is that you risk getting back less than you put in, if you have to sell after prices drop. Investing is, therefore, only really suitable for money you can leave untouched for five years or more, not for anything you might need in a hurry. Try starting with one of the online ‘robo-advisers’, if you don’t want the hassle of choosing your own investments. They make life easier by offering a small range of portfolios, from cautious to adventurous. You can open accounts with the likes of Wealthify, evestor and Moneybox with as little as £1, while Nutmeg requires £500. For a lower cost one-stop-shop approach, consider Vanguard’s Lifestrategy funds.

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