Santander has written to millions of customers in an effort to "clear up myths" surrounding investing, as the high street bank encourages more people to consider putting their money into the market. The bank sent out emails on Thursday, May 14, addressing common misconceptions that often deter potential investors.
Dispelling the myths
In its communication, Santander outlined three prevalent myths and provided the reality behind each one. The first myth is that a large sum of money is required to start investing. The bank clarified that customers can begin with as little as £20 per month or a lump sum of £100, depending on what fits their budget.
The second myth suggests that investors need to have an in-depth knowledge of the stock market. Santander explained that ready-made funds allow experts to manage the investments, so customers only need to choose an option that aligns with their financial goals.
The third myth is that investing is too risky. The bank pointed out that with ready-made funds, investors can select a risk level they are comfortable with, making the process more accessible.
Additional options and warnings
Santander also noted that if ready-made investing is not suitable, customers can choose from a wider range of other funds available across the market. However, the bank reminded customers that investments can go down as well as up, and past performance is not a guide to future returns. It is possible to get back less than the amount invested. The bank advises that only money not needed for at least five years should be considered for investing, and fees apply.
Santander emphasised that it will never share a One Time Passcode with anyone, including its employees. It will not move money to a new account for security reasons, and customers should be wary of scams where criminals pretend to be trusted individuals. The bank urges customers to always verify who they are speaking to.
