When share prices have risen a lot, people often say savings are a waste of time. When markets fall, the opposite advice appears. Both miss the point. Shares and savings are built for different jobs.
Shares mean you own a slice of companies. Their prices can rise and fall sharply. Fixed savings and many deposit products are agreements about interest and dates. One can grow more over long periods, with ups and downs. The other is meant to be steadier.
Start with the date you need the money
£50,000 needed for a house move in twelve months should not be treated the same as £50,000 for retirement decades away. Same amount, different timing, different risk.
If a big fall in value would force you to sell, that money should not be in shares. Keep it in savings or a short fixed term.
Be careful with the word “bond”
A bank fixed savings product, a government bond, and a bond fund can all get called “fixed income.” They do not all behave the same. A bond fund’s price can fall even when the word “bond” sounded safe.
A simple split many people use
Keep near-term money and emergency savings in cash or short fixed terms. Consider longer-term investments only for money you can leave alone through market falls. You do not have to pick one side forever — match each pot of money to its job.