What is saving money?

Saving money is the process of parking cash in extremely safe accounts or securities that can be accessed or sold in a very short amount of time.

What is a savings account?

Savings is the amount of money left over after spending and other obligations are deducted from earnings. Savings represent money that is otherwise idle and not being put at risk with investments or spent on consumption. Savings accounts are very safe but tend to offer very low rates of return as a result.

What is the difference between money and savings?

When money is invested, it is at risk of loss—but that risk is offset by positive expected returns over time. Savings, in contrast, are by definition "safe" from any potential loss. Additionally, savings are highly liquid and available for immediate use (e.g., using a debit card to make a purchase).