Usually, when people talk about 'saving' they mean cash in the bank or building society – cash which is secure, grows steadily and which is readily available, if they need it. For all investors, whatever your circumstances, it's vital to hold enough cash to deal with unforeseen events.

When we talk about 'investing', we're normally talking about setting aside money with a view to long-term growth. Investments are usually assets which can go down in value as well as up as a result of market movements. Where this happens you may get back less than your original investment, so you shouldn’t invest in a long-term product if you might need your money sooner rather than later.

For an explanation of investment terms, please see investment terms explained.