If you invest your money in a savings account via a bank or building society the risk will be low. Unfortunately, so will the return. Bonds which you can invest in through a stocks-and-shares ISA can provide a greater return, although this varies depending on the type of bond held.

Alternatively, you could hold shares. These can provide still greater returns if the company you invest in performs well. But because companies can perform badly or even fail, the risk is higher too.

Generally, as the return offered increases so does the risk. The kind of investment you choose and the level of risk you're prepared to take will partly depend on when you need your money back.

If you can be flexible about this, you could think about investing in a stocks-and-shares ISA. Unlike a deposit account, the value of stockmarket investments can go down as well as up, and so an investor may not get back as much as they originally invested. However, being flexible about when to sell means you'll be better placed to take advantage of any rise in value.

If you have less flexibility you might prefer a cash ISA. Cash investments grow at a steady - if modest - rate, so it doesn't matter that much when you withdraw your money.

Once you're comfortable with the idea of investing via an ISA you'll need to think about other factors likely to influence any investment you make. Our Planning section has plenty of pointers on how to meet your investment objectives, whether you're investing for children, growing your money as much as possible, or saving for retirement.

Please contact your Financial Adviser if you would like further information on the subject of risk and return.