Saving vs Investing

VIDEO- Good description of the difference between saving and investing.

IMPORTANT FACTS- Saving vs Investing

Saving tends to be for short-term goals or to be available when money is needed quickly (for example a holiday, birthdays, or an emergency such as replacing a household item). You usually put your money into a savings account where it earns interest, without the risk of losing it (short of a bank, building society or credit union getting into serious financial difficulty). You can also save with some supermarkets, local shops or informal Christmas savings schemes.


Investing is for the longer term – if you’re willing to tie up your money and take some risk (have a short-term loss in order to have the opportunity to make a long-term gain) to get a better return.