Savings are ideal for short-term goals and emergencies, providing quick access to funds.
Investments are better suited for long-term goals like retirement or wealth accumulation.
Image credits: Pexels
Returns:
Investments generally offer higher returns than traditional savings accounts, allowing your money to potentially grow at a faster rate.
Image credits: Pexels
Risk:
Savings in a bank account are low-risk but offer minimal growth. Investments carry a higher level of risk, but the potential for higher returns comes with it.
Image credits: Getty
Inflation:
Investments may help combat inflation by offering returns that outpace it, whereas savings might struggle to keep up.
Image credits: freepik
Liquidity:
Savings provide easy access to cash, while some investments may have restrictions on withdrawal.
Image credits: Freepik
Diversification:
Investments allow for diversifying assets, spreading risk, and potentially increasing overall returns, while savings lack this aspect.