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[Razor1911]

There are different terminology that we have to deal with in everyday life in business sector. One of them which is very common but have different in fundamental is savings and investment. Though from the outside, both look same but there are some fundamental difference between these two.

When you save money for your savings, you are putting your money for future purposes without giving any importance to the appreciation. The value of the money you save more or less will be same after certain time. While in case of investments, you are putting your money in the schemes where there is appreciation. Means the value of your invested money will increase with time. Surely investment has higher risk then savings.

 

[Ridorz]

Saving money and investing money are similar but they have a little different to each other as you have already given answer to the question. When you save money, the money will remain in the same amount till you need it, but when you invest money, the money will be increasing in amount.

 

[Razor1911]

Saving money and investing money are similar but they have a little different to each other as you have already given answer to the question. When you save money, the money will remain in the same amount till you need it, but when you invest money, the money will be increasing in amount.

The saving money may only appreciate by a little, but the main factor is that it has very low risk. Where as is investment for appreciation contains risk. And sometimes the yield maybe in negative.

 

[Ridorz]

The saving money may only appreciate by a little, but the main factor is that it has very low risk. Where as is investment for appreciation contains risk. And sometimes the yield maybe in negative.

You are right. I can even say saving money is not have any risk unless you saved it at home but if it's a bank you saved it, there's no risk. But investment has a very high risk because anything can happen at any time unexpected.

 

[LutherKing]

You can actually put money in those schemes that are backed by government so you don't lose anything and appreciate in some value to be honest

 

[CyberPreNurse]

Investments help you to get better returns for your money, while savings Do not have potentials of bringing good returns, but they are the best bet for people who consider investing as being too risky.

 

[Pousinha]

Apart of the yet mentioned differences (savings safe from risks -in any way, I'd better talk about low risk, because in the financial world the zero rate risk simply doesn't exist- as investments involve risks), sometimes the difference becomes not so perceptible: depends on the products our banks offer and the banks products, in their turn, depend on the financial laws of each government. Depending on the country and on the historical moment, it exists savings getting returns quite as investments (during certain periods, there are savings whose interests get even higher than stocks) and it exists the other way round too. And depending on the country, there are also bank investments facing the same low rate risks as savings.

 

[BullyMaguire]

You can't expect your savings to grow 2x or more in just a year and the risk in savings is low. Exact opposite of investing.. your money can grow in a short period of time but the risk is greater

 

[Emmanuel24]

Saving is just to keep your money for future purposes while investing can be liken to saving but it's a way you save your money and begin to increase more and more. Both of them are useful for future references.

 

[a_jerobon]

That is a good difference between savings and investments. I totally agree that investment involves high risks, probably because sometimes the method was not legit and so you loose both the money you invested and the profits you were expecting.

 

[Humbu]

Yes the difference is very big, with saving you are actually putting money away to use in rainy days. But with investment you put money in order to yield interest

 

[Emmanuel24]

That is a good difference between savings and investments. I totally agree that investment involves high risks, probably because sometimes the method was not legit and so you loose both the money you invested and the profits you were expecting.

Only if an investor try to gamble, would he/she lose its money. There are some investments that are stable and yield profit. It's just that the profit is little such example is deposit account in bank.

 

[Ranamal]

Savings will increase slowly, and investment will increase quickly but there is lots of risk in the investments, but investing is very risky if you are not good in it

 

[Pousinha]

You can't expect your savings to grow 2x or more in just a year and the risk in savings is low. Exact opposite of investing.. your money can grow in a short period of time but the risk is greater

During these last years, in my country even stocks don't grow such this way (2x). Worse: their dividends now compares to savings bank interests. But we have fintechs that operate the same way as banks and their bank deposits (a very conservative investment), protected by a reliable federal financial entity, are now earning more than 5% yearly that soon will increase to 6,50 (cause Central Bank is going to increase national bank interests). After the next Central Bank decision, bank savings will become an interesting option, better than stocks and funds investments (since the end of 2019 our mutual funds became the worst investment Brazilian residents can imagine).

 

[sh199]

I think, for me its depends. Savings is like getting a small APY from a particular amount of money. It could be 6/7/8% APY. But investment is like investing your money for getting a high profit. It would be %. Ex; invest in stocks, crypto, startups, and lots more.

 

[BullyMaguire]

During these last years, in my country even stocks don't grow such this way (2x). Worse: their dividends now compares to savings bank interests. But we have fintechs that operate the same way as banks and their bank deposits (a very conservative investment), protected by a reliable federal financial entity, are now earning more than 5% yearly that soon will increase to 6,50 (cause Central Bank is going to increase national bank interests). After the next Central Bank decision, bank savings will become an interesting option, better than stocks and funds investments (since the end of 2019 our mutual funds became the worst investment Brazilian residents can imagine).

How about the Cryptocurrency investments? Most crypto has grown a lot last year. Also last year people are going crazy about the stocks too because they suddenly spiked

 

[Corzhens]

I work in a bank. We have a savings account which yields very minimal interest earnings. For an investment we have the trust accounts. However the bank's investment scheme earns much lower earnings than those offered by other institutions. But ours is the safest investment with no risk at all.

 

[Slender1704]

There are different terminology that we have to deal with in everyday life in business sector. One of them which is very common but have different in fundamental is savings and investment. Though from the outside, both look same but there are some fundamental difference between these two.

When you save money for your savings, you are putting your money for future purposes without giving any importance to the appreciation. The value of the money you save more or less will be same after certain time. While in case of investments, you are putting your money in the schemes where there is appreciation. Means the value of your invested money will increase with time. Surely investment has higher risk then savings.

There is a difference between savings and investment .Investment is putting your money with an aim of getting interest .The value of your savings account does not change that much and you are allowed to withdraw your saving anytime.

 

[Anup007]

There is a difference between savings and investment .Investment is putting your money with an aim of getting interest .The value of your savings account does not change that much and you are allowed to withdraw your saving anytime.

You Are absolutely correct. When you put your money in saving scheme, investing the money for long term. But in order to invest, you have to hold your money for longer period. Whereas, investment purposes are short term and provide higher revenue.

 

[Setfragil]

There is a great difference between savings and investments of capital. Savings is keeping your money in a safe place to be used at a later date while investment is using your money to do something that will brings more profits.