Liquidity and inflation

Over many years compound interest can make a significant difference to investment returns.

Cash may be a suitable investment for people who require liquidity (having quick access to your money), and for the peace of mind that comes with knowing that the capital value of the investment will not decrease in value.

Even though cash may not lose its dollar value, over time it may lose its purchasing power due to inflation (i.e. increases in the cost of living).

There are usually no upfront fees or exit fees with cash investments; however, there may be ongoing fees such as bank or building society fees.