Differences between Saving and investment

[Heatman]

Different between savings and investments, there is alot different, also is better to invest than to save. Saving does not give gain or profit while investment give gain.

Even an ordinary layman knows very well that investment is far more important and better than just having savings in your bank account no matter what amount of money it is.

 

[Sammyesx]

The words 'Saving' and 'Investments' are sometimes used interchangeably by most folks.
The two words have some similarities but that doesn't make them the same.

"There's a popular saying that Savings are investments, but not all investments are savings"

Saving actually means keeping some amount of money aside to meet long or short-term needs which may not yield any profit and it attracts zero risk.

On the other Hand, investment means putting money into a business or venture to yield profits within a specific period with risks depending on the targeted roi.

There are some similarities between both words but they are not the same.
Savings is basically money that is kept aside over a period or time either long or short term.
Investment can be seen as a business move or plan where by a particular amount is used to startup a business, the purpose of investment is basically to make profit.

 

[Heatman]

There are some similarities between both words but they are not the same.
Savings is basically money that is kept aside over a period or time either long or short term.
Investment can be seen as a business move or plan where by a particular amount is used to startup a business, the purpose of investment is basically to make profit.

Looking at what's happening with all Cryptocurrencies now, I know most people who invested in them might be thinking of making a decision on selling since it's falling hard now from $41k to $34k as of this moment but the wise ones are busy buying more because it's definitely pulling off soon.

 

[Sotherefore]

Saving is just keeping a money for a long time for future uses or for future purpose with no expectation to have an interest but investment is using your money to put into a something or any other form of investment that can generate you an extra percentage of what you invested,saving is not profitable but investment is profitable that is the only differences.

 

[Hasan Raza]

There is a lot of difference between investment and savings. Saving is the part of your income or salary you save for the purpose of your future need or any emergency need. But investment is the part which you invest in any organization to generate more profit.

 

[Ebuka Stephen]

Some of your savings can be labeled as an investment. For example, if you save money on a fixed deposit bank account, it is also an investment. Likewise, if you invest in security bonds/ treasury bills (offered by the government, central bank, and commercial banks), it is also some kind of saving. Sometimes it is really hard to say which one is which.

Well I love the way you broke down the words , savings can be said to be keeping aside or set aside and amount of money for the future or to meet up future needs while investment is a capital in expectations of deriving profits and gain, but it can be said investment requires risk taking but savings do not.

 

[Aniwhyte]

I really don't see much of a difference between them both because you can invest and save at same time e.g you can invest and continue saving your money, when you see that you investment is doing well you could invest more and also continue saving. It would be great also if you would be saving some returns that you're getting from your investments.

 

[archahmad]

between savings and investment each has it own advantages and disadvantages. The advantage of savings is that your money is quaranteed, while investment has it own risk. Vise-versa. But l will go for investment is better.

 

[Koldej]

Savings and investment are two different things. While saving is a money set aside on daily or weekly or monthly basis to perform a specific need, savings is not subject to interest or commission, investment is putting your money in a particular business that yields profit overtime

 

[Chumzy]

Saving is money kept aside, for safe keeping. Usually no interest payment is expected on it. The primary goal is safekeeping. Investment is money put into something with the expectation of interest or profit.

 

[Nicklas22]

Saving and investing often are used interchangeably, but there is a difference. Saving is setting aside money you don't spend now for emergencies or for a future purchase. Investing is buying assets such as stocks, bonds, mutual funds or real estate with the expectation that your investment will make money for you.

 

[Adebayonle7]

Saving is a way to keep your money away from spending on unnecessary things or spending at the wrong time. Investment is a better saving. It also help you to get the money away from unnecessary usage and spending but also add value to your money. Investing means keeping your money to grow higher by a certain percentage.

 

[BrolySSJ]

The words 'Saving' and 'Investments' are sometimes used interchangeably by most folks.
The two words have some similarities but that doesn't make them the same.

"There's a popular saying that Savings are investments, but not all investments are savings"

Saving actually means keeping some amount of money aside to meet long or short-term needs which may not yield any profit and it attracts zero risk.

On the other Hand, investment means putting money into a business or venture to yield profits within a specific period with risks depending on the targeted roi.

This is very true. I often used to use the two interchangeably as well especially when I was smaller and still in school, however since you start to see the difference you can see that there are benefits to both. Saving is better for those that cannot afford to take any risk, however it is unfortunate that you can't get interest on it. However there are savings accounts at banks that offer interest and that do so with no risk to the user. Is this considered saving or investment?

 

[Heatman]

I really don't see much of a difference between them both because you can invest and save at same time e.g you can invest and continue saving your money, when you see that you investment is doing well you could invest more and also continue saving. It would be great also if you would be saving some returns that you're getting from your investments.

There is actually a difference between them if you are looking at it closely because one gives you a reasonable sum of interest every day, weekly or monthly while the other does not give any tangible dividend.

 

[maventiger]

With limited financial capacity, I would prefer savings than investment because it has lesser risks yet lesser opportunity to increase its amount. If you have some amount to spare beyond savings, investment could bring-forth opportunities for your money. It really depends on one's financial condition.

Simply....Savings involve putting your money in the bank where you're charged for the safekeeping..
Investment is Putting your Money on a business that gives you your money back plus additional money called return on investment

Savings in not an investment but fixed deposit might be termed investment. Savings overtime is being affect by inflation thereby reducing the purchasing power while investment is inflation free and you earn reasonable amount of returns on capital.

 

[Khezo]

There is a huge difference between saving and investing. Saving is just when you keep the money in a place with no thought of spending or using it for something.
Investing is simply using the money for other things like business in other to get more money

 

[Heatman]

Savings in not an investment but fixed deposit might be termed investment. Savings overtime is being affect by inflation thereby reducing the purchasing power while investment is inflation free and you earn reasonable amount of returns on capital.

Depending on the interest rate of the fixed deposit is what you can consider it as an investment because when the interest earned on the fixed deposit is small, it's almost the same thing as an ordinary savings account. There was a bank I wanted to open a fixed deposit account in the past and they said 10% of my investment, I did not take the offer.

 

[maventiger]

Depending on the interest rate of the fixed deposit is what you can consider it as an investment because when the interest earned on the fixed deposit is small, it's almost the same thing as an ordinary savings account. There was a bank I wanted to open a fixed deposit account in the past and they said 10% of my investment, I did not take the offer.

A commercial bank! Seriously, that is a reasonable deal bro. Well It depends on the duration if any commercial bank offer me such interest, I will be very happy to keep some funds I wouldn't need in my deposit account.

 

[Ridorz]

The words 'Saving' and 'Investments' are sometimes used interchangeably by most folks.
The two words have some similarities but that doesn't make them the same.

"There's a popular saying that Savings are investments, but not all investments are savings"

Saving actually means keeping some amount of money aside to meet long or short-term needs which may not yield any profit and it attracts zero risk.

On the other Hand, investment means putting money into a business or venture to yield profits within a specific period with risks depending on the targeted roi.

This is great article, I like it.
Saving money and investment are similarly but the difference there is that saving is just to keep money for a period of time with aims of intend to use it for something without any gaining profits, while investment of money is the act of use money to find money, you spend money on the a business with aims gain a profits or get it back in double.

 

[Heatman]

A commercial bank! Seriously, that is a reasonable deal bro. Well It depends on the duration if any commercial bank offer me such interest, I will be very happy to keep some funds I wouldn't need in my deposit account.

Yes, it was a commercial bank. I was looking at least 15% discount and nothing below it for the amount they were asking for the fixed deposit. The duration was 12 months, so the interest rate didn't balance with what they were asking for in my eyes.