What Is The Difference Between Savings And Investment?

Savings and investments are two totally different things, despite their initial similarities. Saving money is something we do automatically when we put money into an account. It is not aimed to generate more money and has no risks of losing money, unlike investments. Savings accounts are designed however to have high interest or low tax.

Saving accounts are designed so the customer can put aside their money to allow it to build up in interest or for another time. Some savings accounts charge for withdrawals which further makes it easier for the customer not to use that money. You can get online only savings accounts which usually have higher interest rates and carry higher security restrictions.

Savings are essentially concerned with capital preservation and easy access (if you choose). Savings accounts include cash ISA where you can ‘buy’ one for a period of time. Most of these require a minimum start amount and have limits or restrictions when it comes to withdrawals and payments in.

Investments are designed so that you should gain a higher amount of money over time, than to what you originally put in. You can invest in stocks, bonds, mutual funds and/or certificates of deposits. Many people invest in stocks after doing their own research, but banks can supply advice and suggestions as to what will (hopefully) make money. Investments are used to take profits and dividends. They are usually longer term than savings accounts.

Investing is similar to gambling, in that there is always the risk of losing money. If you are choosing your investments yourself, make sure to research fully into what you are investing in. Other types of investment products available within banks include shares where you buy a share in a company.

Pooled or Collective investments are where small contributions from several people are used to amount to a single investment fund. These include Authorised Unit Trusts, Open Ended Investment Companies, Investment Trusts and Exchange Trade Funds.

Seek advice from your local banks before dedicating yourself to any of these accounts of investments.

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. While Investments are the money or other assets that is purchased with the hope that it will generate income 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.

Your "savings" are usually put into the safest places or products that allow you access to your money at any time.

When you "invest," you have a greater chance of losing your money than when you "save."

Saving is place where is surety for income in any time but in investment it is not sure that profit will get every time.

It is simple to confuse saving and investing. Savings are typically put into the secure places that allow you admission to your money at any time. Investing is the greater chance to lose your money than when you "save." You also have the chance to earn more ICICI Pru MF currency than when you save.

Saving is in our daily life generally means as putting money aside for rainy days. Just to keep money in bank or some where like soaks –. So it means you save particular amount of money for your future use. But if we consider saving with economic point of view than the definition is little changed. According to economics, saving is the personal disposable income minus personal consumption expenditure. It means the money which does not consumed immediately for buying goods. Or a part of income is saved. There is no risk factor involve.

As far as we are talking about investment than it is certain amount of money which is saved or use in some projects or certificates where we can take profit more than the money we have saved or invest. In general terms investment means the use of money to make more money. According to economics it is the production per unit time of goods are not consumed but use for future production. Example on purchase of saving certificate there we get certain interest value which is more than our saved amount. But in some cases if you purchase shares there always a risk factor involves. Because in that case we might get a loss on amount we invest.

I'm studying economics and the other day we took an equation representing income, consumption,savings and investment as follows: Y = c + s
  y = c + I
at equilibrium  I = s
why? Does that mean when consumption is one, savings and investments have to be one?

Fifteen hints on savers and investors?

I think you all suck and don't know what your talking about

SAVING is that part of income which is kept idle....
INVESTMENT is that part of income which is used for sake of profit...

According to me saving is a part of income which can be invested in bank
but investment is a  long term profit purpose