First principles of investing

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7. Easy access deposits for emergencies

The traditional home for cash is usually the bank or building society. Postal and internet accounts may tend to be very competitive.

As a rough guide it may be worth keeping three times your monthly outgoings in an account which has one week's notice. Go for the best rates and avoid keeping too large a reserve when part of your money could be earning a potentially better return elsewhere.

Accounts offering a higher rate of interest with, say, three months' notice, may be used for known future capital expenditure - for example a new car or a holiday.

You may wish to feed money from your other investments into your higher interest rate account well in advance of the dates on which your more substantial bills fall due. In this case, do keep a regular check on your longer term deposits as rates may change.

Top rates: Check the personal finance press and for a more detailed guide use Moneyfacts: Tel: 01603 476100.

1. Five steps to establish your investment goals 2. Your attitude to risk and reward 3. The major asset classes 4. Which type of manager? 5. Your investment assessment kit 6. Is past performance a guide to the future? 7. Easy access deposits for emergencies 8. Fixed income products 9. A rising income 10. The choice of collective equity funds 11. Pensions and ISAs 12. Tax efficient but may be very risky 13. Selecting your shares 14. Your stockbroker 15. Buying your shares 16. Ethical Investment 17. When to sell 18. How to keep your portfolio on track 19. Do you need an adviser? 20. Conclusion

• First Steps in Shares
• How to Read the Financial Pages