Standard Life Investments

Cash

Leaving your money in a simple, easy access, cash deposit account is generally considered one of the safest investment options.

Cash is frequently viewed as a preferred option during periods of extreme volatility or stock market weakness. Sitting in cash may only be a temporary and tactical measure while you wait for a more opportune time to invest either in equities, bonds or property.

Although you'll typically receive interest on your cash, you should be aware that inflation can reduce real returns over time. In a low-interest rate environment, there is little incentive for holding a large amount of cash on deposit long term – other than what you might need as an easy-access emergency fund.