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Question
What are the difference between savings and investment?
Distinguish Between
Solution
| Basis for comparison | Savings | Investment |
| Meaning | Savings represent that part of the person’s income which is not used for consumption. | Investment refers to the process of investing funds in capital assets, with a view to generate returns. |
| Purpose | Savings are made to fulfill short-term or urgent requirements. | Investment is made to provide returns and help in capital formation. |
| Risk | Low or negligible | Very high |
| Returns | No or Less | Comparatively high |
| Liquity | Highly liquid | Less liquid |
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Savings in Banks and Investments
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