Theory:

Savings in Banks and Investments:
Savings are defined as the part of a consumer’s disposable income that is not used for current consumption, instead kept aside for future use. Banking facilitates saving money through various forms of accounts.
 
sav.jpg
 Savings
 
1. Student Savings Account - Mainly for young people, banks offer more flexible terms such as lower minimum balance requirements.
 
2. Savings Deposits - Opened by customers to save part of their current income. The bank offers some interest to this saved money, and the customer can withdraw their money when they require it.
 
3. Current Account Deposit - Current accounts are generally opened by business firms, traders and public authorities. The current accounts help in frequent banking transactions as they are repayable on demand.
 
4. Fixed Deposits - Fixed deposits are meant for investors who want their principle to be safe and yield them fixed yields. The fixed deposits are also called 'Term deposit'.

Benefits of Savings
• You will be financially independent sooner.
• You would not have to worry about any unforeseen expenses.
• In future, you will have a financial backup in place if you lose your job.
• You will be prepared if your circumstances change.
• You will be more comfortable in retirement.
• Save today for better tomorrow
 
Intensity to save among the students
• Teach them about taxes and accounting.
• Involve them in grown-up money decisions.
• Encourage them to apply for a scholarship.
• Help them with a budget and apply for student loans.
• Teach them personal savings.
 
Investments:
The process of investing in something is known as an investment. It could be anything, i.e. money, time efforts or other resources that you exchange to earn returns in future.
Investment can be made in different investment vehicles like,
1. Stock
2. Bonds
3. Mutual funds
4. Commodity futures
5. Insurance
6. Annuities
7. Deposit account or any other securities or assets
 
Investment always comes with risks of losing money, but it is also true that you can reap more money with the same investment. It has a productive nature that helps in the economic growth of the country.
 
Comparison of Savings and Investments
Basis for comparison
Savings
Investments
MeaningSavings represents that part of the person’s income which is not used for consumption.Investment refers to the process of investing funds in capital asset, with a view to generate returns
PurposeSavings are made to fulfil short term or urgent requirementsInvestment is made to provide returns and help in capital formation
RiskLow or negligibleVery high
ReturnsNo or lessComparatively high
LiquityHighly liquidLess liquid