What is the difference between savings and investment?

Purpose: When we talk about saving, we usually mean putting aside some of our money for things like emergencies, future expenses, or short-term financial goals. It is money that you keep on hand in case unplanned expenses arise or you decide to make a purchase.
Liquidity: Savings are highly liquid, which means you can easily access the funds when needed. Cash, money market accounts, and savings accounts are typical types of savings.
Risk: Savings are considered low-risk because they are typically held in secure, interest-bearing accounts. The chance of losing the principal sum is very low.
Returns: Compared to investments, savings typically yield lower returns. Savings account interest rates are frequently low and may not keep up with inflation.
Purpose: People save money to cover short-term expenses, build a financial safety net, or set aside funds for particular objectives like a trip, a down payment on a home, or an emergency fund.

Purpose: Investment involves putting your money into assets or ventures with the expectation of generating a return on that capital. It is typically a long-term strategy intended to increase wealth or meet financial objectives.
Liquidity: When compared to savings, investments are less liquid. Depending on the state of the market, they frequently need a longer time horizon to realize returns, and selling assets may take some time.
Risk: Depending on the type of asset, different levels of risk are associated with investments. Stocks, bonds, properties, and mutual funds are typical investment options. There is a chance of losing some or all of the invested money because the value of these assets can change.
Returns: When compared to savings, investments have a higher potential for returns. Investments may increase in value over time as a result of capital growth, dividends, interest, or rental income.
Purpose: People invest to build wealth, fund long-term goals like retirement or education, and stay ahead of inflation. It’s a strategy for putting money to work for you and achieving financial goals that go beyond immediate needs.