ARTICLE NO- 02
| Basis of Difference | Investment | Saving |
| 1. Meaning | Investing money is the process of using your money to buy assets that value over time and provide high returns in exchange for taking on more risk. Investments are typically volatile and can be illiquid. | Saving is the process of putting money aside for a future expense or need by parking it in bank accounts. The saved money is used for purchases and emergencies, and it is extremely low-risk and highly liquid. |
| 2. Goal | Investments are made to achieve bigger goals like building wealth, funding education, buying a house, etc. They often require long-term commitment and market research. | Savings are short-term and are used for emergencies and purchases, and can be done without much research. |
| 3. Returns | Investments have the potential to yield much higher returns. | You usually earn a fixed and steady amount of interest on your savings. |
| 4. Protection Against Inflation | Investments are excellent financial products to combat inflation. | The value of cash in a saving account drops when inflation is on the rise |
| 5. Products | Real Estate, Bonds, Stocks, Equity and Mutual Funds etc. | Cash, Bank Savings Account, FDs, RDs etc. |
