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Saving and Investing, What's the Difference?

Saving and investing
Saving is an activity to set aside a portion for short-term needs or as a fund that will be used in an emergency and savings can be withdrawn at any time, while investment is the development of money held for profit and to take investment money takes time to find the funds

To invest, don't invest just anything, for that the Financial Services Authority (OJK) of the Republic of Indonesia appeals to those who want to invest to ensure that the party offering the investment has permission from the authorized institution, such as OJK, Bank Indonesia, CoFTRA, or the Ministry of Cooperatives and SMEs. Following are the differences between saving and other investments:

Function Difference

Savings are used for the allocation of reserve funds in emergencies, savings funds in case of circumstances to meet daily needs or can or as funds that will be used for the future (such as for wedding receptions).

While investment serves to increase wealth, enlarge the business, have a constant additional income

Objects and Goals

The object of saving is money and the goal is a reserve fund or emergency fund when there is an urgent need for more funds. While there are many investment objects such as: gold, stocks, mutual funds, securities, bonds, crypto, property, various investment objectives such as: Earning a steady income, Developing a business, Guarantees in business.

Risk and Interest

Saving has less risk than investment. The safest way to save is at a bank because it has proven security, even if the bank where you save your savings is lost (theft) the bank will definitely replace the money.

While the risk of investing is higher than saving because at any time the money you invest is lost for some reason. For this reason, everyone who wants to invest must choose a place that is guaranteed and not arbitrary.

Product Form and Type

The difference between saving and investing lies in the form or product. Savings are generally in the form of money stored in banks as deposits or savings, while in investment there are several types of products that must be known and studied before investing.

Ease of Access

Saving money in the bank is easier and simpler than investing and taking money from savings in the bank is easier because you can withdraw it at the nearest ATM than withdrawing investment money which requires a process that is not as fast as withdrawing money at an ATM.


Investing can generate more money or expand the money invested, which means investing can generate more profit than saving but has a high risk while saving does not have a high profit but minimal risk.


Saving options may only save money, while investing has many kinds, for example investing in gold, crypto, stocks, etc.

Weaknesses of Saving and Investing

In savings, the money saved does not grow significantly, only interest on savings is the same as the monthly administration fee for savings at the bank where you save.

While the investment has a high risk, it may not be worth the profit, therefore if you want to invest, you must have knowledge and mature intentions when you want to put capital.