What is the relationship between saving and investing. What are some of the risks and benefits in saving with a bank or savings and loan as opposed to investment savings.

Question

History

Marisa Rush

13 October, 06:36

What is the relationship between saving and investing. What are some of the risks and benefits in saving with a bank or savings and loan as opposed to investment savings.

+3

Answers (1)

Know the Answer?

Reid Chung · Answer 1

Saving and investing are both ways in which people set mopney aside in order to let it slowly grow. A bank savings account will often grow at a set annual rate that is rather low. 1-5%. Investments are more risky as they can lose money, or they can grow a lot. The average return on investments tends to be a bit higher ~7%, but it is possible to lose money in the long-term with investment savings.