Savings and Investment is sometimes used interchangeably. Both mean different to different people.

“Savings” term is normally used when people talk about allocating some money out of their income for future consumption. Principal amount is important. While “Investment” term is used when people deploy money in financial products to achieve better returns. Returns, and not principal is important. There is a thin line between the both but here I list down general perception that is associated with both.

Savings Investments
Risk Considered less risky Associated with some risk
Returns Returns is an afterthought Returns are important
Liquidity (accessibility) Considered available anytimeC Can have some lockin
Goals Short term goals Long term goals
Examples Fixed deposits, Liquid Funds Equity Mutual Funds, Stocks

While savings is considered good when it comes to risks and liquidity, Investments are for higher returns. Just imagine if you can get the best of both the worlds?