Understanding investing

Whether you’re just finding your feet or have been investing for a while, there’s always more to learn. This is a good, solid place to start.

 

What is investing?

Investing isn’t the same as saving. Instead of simply putting money aside, you’re using it to buy something that could grow in value over time. That might be shares, funds, or even things you already recognise - like buying a home or paying into a pension.

While investing can offer the potential for higher returns, it also comes with more risk. There are no guarantees, and values can go down as well as up - even with something as familiar as property. That’s why it’s important to understand what you’re investing in and take a balanced, long‑term view.

Clearing up the investing myths

Investing can feel daunting at first, but it doesn’t have to be. By clearing up some common myths, we’ll help you see things more clearly, build confidence, and make informed choices about putting your money to work.

Could I lose my money?

It’s a fair question but risk doesn’t mean you’re bound to lose out. Over time, markets have recovered and grown, even after major events like Covid.

Keeping everything in cash can feel safer, but rising prices can quietly erode the value of your savings.

Investing gives your money a better chance to grow, particularly if you’re able to stay invested for 5 years or more. You can still access your money, but taking a long‑term view can help smooth out the ups and downs.

Spreading your money across different investments, known as diversification, can also help balance things if one area dips.

Resilient investing

Don’t you need to be rich to invest?

No, investing can start smaller than you might think. With either a stocks and shares ISA or Share Dealing Account, you can begin from £20 a month using our free regular investment plan.

For 18 to 25 year olds, we offer free investing accounts. You can choose from our Invest Wise ISA or Share Dealing Account.

If you’d rather keep things simple, Ready Made Investments let you start from £50 a month or a £500 lump sum. Choose one of 3 risk levels, and our experts will take it from there.

Starting small is perfectly fine. Just be aware that account fees can have a bigger impact when your balance is still low, particularly in the early stages. As your investment grows, that effect reduces.

It’s also sensible to keep some cash savings aside for life’s unexpected moments, so you’re not depending on your investments in an emergency. Investing is for the long term but you’re always free to stop or start when it suits you.

Regular investing

I’m not sure where to start

That’s completely normal, the good news is you don’t need expert knowledge or lots of spare time to begin.

If you want an easy way in, our Ready‑Made options do the hard work for you. Simply choose your risk level and let our experts take care of the rest.

If you’d rather be more hands‑on, our pick‑your‑own accounts give you control over where your money goes. We’ll help you narrow things down with tools like the Fund Select List and ETF Quicklist. And with our regular investment plan, you can set things up and let them tick along.

Getting started is often simpler than it feels, and whatever your experience, we’ve got options to support you every step of the way.

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Investing basics - how to get started

Learn the essentials of investing, from why risk matters to how diversification, market ups and downs, and growth versus income can shape your choices. These clear, practical guides are here to help you build confidence before you get started.

Investing for beginners

Take your first steps with our straightforward 5‑step guide, designed to help you get started with confidence.

Investment risk explained

Get a clear understanding of risk, what it means for your money, and how you can manage it before you invest.

Income vs growth

Looking for regular income, or aiming to grow your money over time? Explore both approaches and see which one fits your goals best.

Investment accounts and assets

Explore your investment options with confidence. From Stocks and Shares ISAs to funds and investment trusts, we break down what each one does and how it could work for you.

What is a stocks and shares ISA?

Learn how a Stocks and Shares ISA works and how it can help you invest tax‑efficiently.

What is a fund?

Discover what a fund is and how it pools investments together.

What is an ETF?

Find out about ETFs (Exchange Traded Funds) and how they can help you start investing simply and confidently.

Investment Trusts

Understand Investment Trusts, how they work and how you can invest in them.

Investment planning

Grow your confidence as an investor. Learn about tax‑efficient options, investing in line with what matters to you, and simple ways to stay on track through market ups and downs.

Tax-efficient investing

Get more from  how you invest your money with our tax-efficient investment ideas.

Responsible investing

Responsible investing looks at the bigger picture - how companies affect people and the planet, alongside financial returns.

Resilient investing

Through resilient investing you can learn how to keep your footing when markets rise and fall, and take a calm, long‑term view of investing.

Why volatility is good

Markets rise and fall, that’s normal. Learn how a calm, considered approach can turn market volatility to your advantage.

Tax and ISA rules

Find out how ISA subscription rules and tax around investing could affect you.

 

Time in the market vs timing the market

Curious about the difference between the ‘Time in the Market’ and ‘Timing the Market’ investing strategies? Watch our video with iShares by BlackRock, to learn more.

Keep in mind that the video is produced by BlackRock and does not constitute investment, or any other advice and is subject to change. Any opinions expressed are their own.

Build and manage your portfolio

Learn how to diversify your investments, explore opportunities around the world, and balance risk and reward as you work towards your goals.

Build your portfolio

When you’re ready to build your investment portfolio, we’ll guide you through clear, straightforward steps to help you find the right balance.

International investing

Investing isn’t just about what’s close to home. Learn how international investing can open up opportunities around the world.

Investing for longer increases the likelihood of positive returns. Over a period of 5 years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in.

Key terms you should know

Understanding the language of investing makes all the difference. Learn the key terms and ideas to help you make informed decisions with confidence.

  • An asset is anything you own that has value - like money, property, or even shares in a company. If it helps you build wealth or if you can sell it for cash, it’s an asset.

  • Your portfolio is your personal collection of investments. Your financial footprint, showing how you’re building wealth over time.

  • Diversification aims to spread your risk by not putting all your money in one place. If one asset falls in value, others might be doing better, helping to add balance to your investments.

  • Liquidity is how quickly and easily you can turn something into cash. Cash is almost instant. Selling shares usually takes 2 days. Selling a house? That takes time. The more liquid something is, the faster you can use it.

  • Capital Gains are the profit you make when you sell something for more than you paid. Each tax year you have a Capital Gains Allowance. This is the amount of profit you can make before paying any Capital Gains Tax.

  • Simply put, compounding is earnings on earnings. So, any growth you see on your investments will also earn growth. This builds up over time. It's a snowball effect.

  • Pound cost averaging involves investing a fixed amount regularly, no matter the market conditions. By buying consistently, you buy more units at lower prices and less at higher prices. This method helps lessen the impact of market fluctuations.

Get started in 3

1. Choose an account

You can start simply with Ready‑Made Investments or choose an account that lets you pick your own investments when you’re ready.

Choose an account

2. Choose investments

If you want to invest in more than our ready-made funds, our ETF Quicklist and Fund Select List can help you with your decision.

Research the market

3. Start trading

Start in a way that feels right for you. We’ll be there with trading support along the way, including free regular investing.

Regular investments

Banking online

It's simple and safe to manage your investments in our app or on our website.

 

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Mobile banking app

  • Join our 1 million app users
  • Simple and secure log in.
  • Set up handy notifications.
Download app

Online banking

Log in to view or manage your accounts on our website.

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Register

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Boost your skills

We have a range of easy-to-read content to grow your confidence in investing.

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Tax on investments

If you make a profit on your investments, there may be some tax to consider.

Tax on investments

Your investment options

Take a closer look at the investment options available to you, and find what fits your plans.

Your investment options

Protecting your money

Protecting your money

 

The Financial Services Compensation Scheme (FSCS) protects the eligible money you hold with us.

More about the FSCS

 

The Financial Services Compensation Scheme (FSCS) protects the eligible money you hold with us.

More about the FSCS

Important legal information

Bank of Scotland Share Dealing Service is operated by Halifax Share Dealing Limited. Registered in England and Wales No. 3195646. Registered Office: Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Investing with Bank of Scotland

Whether you have investment experience or not, we're here to help.

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Investing with Bank of Scotland

Whether you have investment experience or not, we're here to help.

Investing homepage