There is a clear difference between saving and investment.
Savings
Savings are generally funds that you set aside to meet your future needs. These could be taking your family for a small holiday or buying an electronic item. Another important feature of savings is that these can be accessed relatively quickly. The most universal way of saving is in to a bank account ('savings' account) where the money is available to you on demand.
Investments
Investments, on the other hand, is what helps you meet your longer term needs and larger financial goals. There is some level of risk attached to all types of investments and this is what determines the returns on your investments. The higher the risk, the greater the chances of a higher return. There are various investment types along the risk-return spectrum.
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