Saving vs. Investing

Saving means putting money aside gradually for purchases and emergencies. Saving money in a typical bank account will allow you to earn interest and make small gains on your deposit over time. Putting your money into a savings account involves little to no risk. If you’re a saver, congratulations; few people will regret putting a portion of their income away regularly.

Investing is a way people try to earn more than the interest a savings account provides by purchasing stocks, bonds, mutual funds, exchange-traded funds, and other investments. There is more risk involved, but history shows that a disciplined, long-term investment strategy can grow a person’s savings, increasing their wealth over time.

We aren’t here to tell you to invest. Some people don’t like taking risks and would trade the possibility of higher returns for the security of steadily building their savings in a traditional savings account. Investing provides an opportunity for greater returns, but make sure you’re prepared to take on the risks that come with investing.