Advantages & Disadvantages of Long-Term Savings Accounts

There are typical benefits and drawbacks associated with every account. For example:



Advantages:

• Potential for high investment returns
• Variety of options available, including share and cash investment
• Generally secure, though risks vary depending on specific investment
• Often guaranteed fixed-rate returns
• Combinations available which enable long-term investment with tax-free returns
  
  

Disadvantages:

• Money is usually invested for long period of time
• Penalties for withdrawing money before end of agreed investment period
• Fixed-rate returns may prove poor offer if average interest rates increase
• Capital invested may be at risk