Should you save or invest your money? That depends on your goals, time frame, and what’s called “risk tolerance.” Risk means the possibility of losing some or all of your money. The higher the risk of a particular savings or investment choice, the higher is the potential reward (what you potentially can earn). Generally, investment products such as stocks and mutual funds can grow your money more than traditional savings options over the longer term, but they are riskier.
Another big difference between savings and investments is time. “Savings” is money you want to keep safe but available for emergencies and short-term goals. You also might save in order to accumulate money to invest later. "Investments" enable you to pay for longer-term goals such as going to graduate school, buying a better car, or retiring.
Here's a comparison of some savings and investments options:
Reasons You May Want to Own