Savings are money or other assets kept over a long period of time, usually in a bank without any risk of loss or making profit. Investments are money or other assets purchased with the hope that it will generate income, reduce costs, or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. In finance, an investment is a monetary asset purchased with the idea that the asset will provide income in the future or appreciate and be sold at a higher price. And usually it has also a risk of some loss. In general terms investment means the use of money to make more money.
How saving and Investing Differ:
Saving Objective: Short term needs Vehicles Used: Bank or money market accounts, CD's Risk: None on balances up to $200,000.00 per depositor (FDIC) Return: Low interest. Key Benefit: