What Is The Difference Between Saving And Investing?

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Saving means putting money aside for safe keeping, investing means there is a risk that you will lose your principal amount.


Generally, savings are low-risk finance products like term deposits and savings accounts from a reputable bank.

Typically, you can access your savings at any time, at a minimal cost.

Are savings guaranteed? 

Savings held in some Australian bank accounts and term deposits are backed by an Australian Government guarantee covering up to $250,000 per person per bank. That means, if your bank goes bust, the government may guarantee your savings.

You should check with your bank to see if your savings account or term deposit carries this guarantee.

2 ways to grow savings

It might sound obvious (and it totally is), but there are only two ways to make savings:

  • spend less, or
  • earn more

If you can’t earn more, you must spend less.

Consider this: If you can save $1 and invest it to earn 15% per year, after 20 years your $1 becomes $16… or $66 after 30 years!


Investing typically means taking risk for a better return. Common examples of investments include:

  • Shares
  • Property
  • Bonds
  • Collectables

An investment can go up and down in value very quickly.

No-one, not even the experts on television or in the newspaper, can guarantee a return on an investment. No-one. Remember that. 

Seriously, no-one can guarantee the return from an investment. So don’t be fooled by anyone saying they can. 

The closest thing to a guaranteed return is a Government bond or savings account… but even Governments can go bust.

Note: you should always consult a licensed and trusted financial adviser before doing anything. This information is factual information and should not be considered financial advice.

How to invest with lower risk

  • Educate yourself before you meet with an expert or invest
    • Read books, blogs, or watch YouTube videos
  • Ask questions – it’s your money
  • Ask: What are the risks? or How will I lose?
  • Diversify your investments across shares, property, cash and fixed income
  • Maintain 3 to 6 months of emergency savings in a safe place (e.g. savings account)
  • Keep your insurance up-to-date. This is important.

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Owen Raszkiewicz

Owen Raszkiewicz

Owen is the Chief Investment Officer of Rask Invest and Founder of Rask. Since founding The Rask Group in 2017 in the hillside suburb of Upwey, Victoria, Owen has overseen the growth of the Rask platform to over 200,000 investor followers. Today, Owen oversees the Rask Analyst team, which helps more than 4,000 Aussies build core portfolios from ETFs and shares, he hosts Australia's biggest investing podcast, The Australian Investors Podcast, appears on Rask's other channels, covering Property, Business and Finance; and leads Rask Education - our education platform which has enrolled over 25,000 Australians into free finance courses. Prior to founding Rask, Owen was an investment analyst at the highly regarded managed funds research business and a writer/analyst for one of the most well-known share market publications. Owen’s formal qualifications include a Master of Applied Finance and Master of Financial Planning from Kaplan Professional, Bachelor of Technology (Information Systems) from Swinburne University of Technology, Advanced Diploma of Financial Services (Financial Planning) and Diploma of Mortgage Broking Management. He's also completed level 1 of the Chartered Financial Analyst (CFA) program.

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