what is the difference between savings and investments?

Answer 1

Savings usually conform to a fixed interest formula. E.g. Bank of England Base Rate + a percentage.

Investments usually have a higher yield based on speculation that a company or commodity will increase in value over a given time and given conditions. E.g. Buy shares in a new company at a low price because they say they have a brilliant new product that everyone will want to buy. If they are right the value of the company increases, so do your shares. If they are wrong, the company fails and you lose your investment.

In short, savings are better if you can't afford to lose your money.

Answer 2

You should try with Penny Stocks Trading (you can find more info here: http://pennystocks.toptips.org )

Penny stocks, also known as cent stocks in some countries, are common shares of small public companies that trade at low prices per share.
I've been subscribing to this PennyStock web site for about a year now and have loved the objective advice they give. He really does look for quality stocks and I've made some pretty nice profits on a lot of his suggestions. Being still fairly new to investing I have been dabbling a lot in penny stocks to try and grow my account. I may not have a big account, but it's a lot bigger than it was a year ago. On just one of Nathan's picks this year I managed to make my investment back ten-fold! Be careful! Penny stocks are notoriously risky but if you follow the right method the risk is almost 0. I suggest to invest only little money first and then reinvest the profits. This is the site I'm using: http://pennystocks.toptips.org
Bye Bye

Answer 3

Writing to a scale savings when paired with investment becomes an Economic science terminology, in which case savings is the amount of savings forming in a society in an year and investment is the amount of investment happened in a society that year. Ideally Savings= Investmet, otherwise discrepency in this equality can cause undesired consequences. If savingsinvestments then there can be depression in the system along with other consequences.
In laymans terms, savings is the money one saves through a bank or through other means of fixed income securities. Investments are the savings through financial markets. The second is not a proper scaled explanation.
In economic terms investments in financial markets are sometimes considered savings.

Answer 4

xguess (above) gave a good definition. Savings are generally lodged with a banking institution and are considered safe, adding interest to the capital sum there. Investments are really a gamble - you put some money into a fund which usually buys shares, the value of which can go up and down. It's possible, but rare, to lose the lot!

Answer 5

In savings the your money stays as money in an account run by a bank or similar institution licensed for that purpose. The capital is guarantied and you receive interest.

In investing your money is used to buy some thing else, such as property or shares etc. The capital is not guaranteed, hence the risk is much greater and what you receive is a part of the profit or dividend or rent.

Answer 6

savings are pretty much guaranteed safe. As long as the bank they are in does not go belly up. Investments can be lost depending what you are investing in. Stocks, bonds. etc.

Answer 7

Savings = Principal value, per unit, is maintained. One dollar in a bank saving account stays at $1 value. Increase in value is obtained by the addition of dollars through earning "interest."
Examples: Bank savings, checking accounts, CDs, money market funds.
Investments = Principal value, per unit, can change. "Share" (with stocks) or "unit" (with trusts) prices can and do change daily. Increase in value is obtained by the additional of dollars (minor change) through earning "dividends" and (mostly) by increased price of each share or unit. Example: Trusts, stocks, and bonds.
PS: Bonds also earn "interest" not "dividends" and if bought new and held to maturity (and the issuing company is strong enough not to go belly up) you will get your principal back. If bought second hand and/or not held to maturity, price can change.

Answer 8

we save to invest
in saving growth is not expected
Invest gr & risk both considered