More Scots save money in a piggy bank than regularly into a bank or building society, according to research by GoCompare Money, which found that 82% of Scottish people collect cash in a piggy bank or coin jar, compared with 57% who make regular savings into a bank or building society account.

Matt Sanders of GoCompare Money says: “Coin jar savings can quickly add up - an estimated total of £167.3million is stashed away in Scottish piggy banks. So, if you’re one of those people who find that you’re regularly building up a reasonable sum of money in your coin jar it would be worth considering a more formal savings arrangement. Rather than wallowing in your piggy bank, your cash will work harder for you in a savings account or interest paying current account.”

But how much harder? Interest rates are at rock bottom – the average easy access saving account pays just 0.38%, according to Moneyfacts, the data firm. Inflation is also eating into returns. The Consumer Prices Index has risen sharply over the past year, from 0.3% in April 2016 to 2.7% in April this year. Of the 757 standard savings accounts, none pays above the rate of CPI inflation.

Returns on cash are consequently low. If you had put £1000 in a cash account 100 months ago, when the Bank of England cut the base rate to 0.5%, you would now have £1040, according to calculations by Chelsea Financial Services, a financial adviser.

Some experts believe that the combination of low interest rates and high inflation could push more people out of cash into riskier investments in the quest for higher returns. Juliet Schooling Latter, research director at Chelsea Financial Services, says: “I don't think anybody believed that interest rates would stay so low for so long back in 2009, so many cash savers stayed put. Over the intervening years, more and more have taken the plunge into equity and bond markets in the search for better income.”

If you had chosen to invest in the average UK equity fund 100 months ago, your money would have grown to £3082. Anyone who had picked one of the top ten equity funds over the past 100 months would have added at least £4000 to an initial £1000 investment. MFM Slater Growth, the top performing UK equity fund over the same period, would have boosted your savings to £6529.

Shares have also beaten cash over a shorter time period. The average stocks and shares ISA has returned growth of 16.5% over the last year, compared with the average return on cash ISAs of just 0.97%, according to Moneyfacts.

However, the promise of higher returns comes with a risk warning. Patrick Connolly of Chase de Vere, an independent financial adviser, says: “If you move into shares you have the potential of much better returns but with this comes the risk that you will lose money. The risk is particularly big now with stock markets riding high.”

Experts therefore recommend that you only consider equity funds if you can keep your money invested for at least five years, giving you time to ride out the ups and downs of the markets.

Connolly suggests HSBC’s FTSE All Share Index, a tracker fund that aims to replicate the performance of the FTSE All Share Index. If you want to move out of the UK, he likes Schroder Global Core, which invests in more than 500 shares from around the world.

Adrian Lowcock, investment director of Architas, a multi-asset manager, suggests a UK equity income fund, such as Ardevora UK Equity Income, which invests in the shares of companies that pay a dividend. He says: “Equity income funds are not without risk but they tend to invest in stable businesses that are also profitable.” He would then consider a global equity fund, such as Threadneedle Global Select.

Latter would be cautious about investing a lot of money into the UK market now. She says: “The UK equity market is on the expensive side and, while it could very well continue to rise in the short term, a correction of some sort would not surprise me either. In these conditions, I would favour funds investing in UK equities that aim to make money when markets rise but also when they fall.” Latter chooses Henderson UK Absolute Return, Smith & Williamson Enterprise and Threadneedle UK Extended Alpha.