Savings Or Investment: Which Practice Suits You More?

Bangalore: Both savings and investment are two unique and different concepts, but they are related to one another as they both go hand in hand. There’s not much difference between the two yet, in savings one saves by reducing present consumption, while in investment one invests in the hope of increasing future consumption. Confused? Well, in simple words savings means keeping a part of your income for some emergency requirements and investment means using the same money to invest in some financial products in order to grow your wealth. Below listed are the difference between savings and investment.

1. Savings is easier to access, not investment

It’s an emergency I need some money! Many people might have faced such situation in their life. In such emergency situations savings is the best way to access cash instantly more than investment.  But often many of the savings accounts do have limits of how often you can withdraw your money.  Access to cash is bit harder in case of investments when compared to savings. Investments are usually in form of assets that are not liquid most of the time. It might take a few days for the money to reach your bank account after you decide to sell your investments.

Read More: RBI Hikes Key Policy Interest Rates By 0.25 Percent 'Only 67 Million Mobile Phones Linked To Bank Accounts'