Putting money in a deposit account is the most common way that we start to accumulate savings. The money is safe – ie: the underlying capital value is guaranteed – and you can get access to it quickly in the case of any emergency. 

​Consequently, even the largest investors always have some money in cash. In fact, the rule of thumb is to hold the equivalent of between three and six months expenditure on deposit. That way, if the roof falls in or your car needs repair, there is money available to get you through the problem without having to access anything you might hold in higher risk or more volatile assets at a time when the market might be against you. 

​Longer term, however, there can be issues with holding all your money in a deposit account, particularly if you are relying on this asset alone to fund your future.