Deposits and savings are both types of financial products that provide the service of keeping money in a bank and earning interest on it. However, there are some important differences between the two financial products.
Features of Deposits
Deposits come in many forms, including checking, savings, and time deposits. In general, deposits are characterized by the fact that they can be withdrawn at any time, and the amount deposited can fluctuate. This makes deposits convenient, but even with low interest rates and large deposits, they often lose money if kept for long periods of time.
Features of savings
Savings are a way to save a set amount of money regularly over a period of time. Savings are usually set for a certain period of time, and the idea is that if you save according to these rules, you will earn more interest. Therefore, savings are used to save for the long term, to gradually increase the amount of money and earn higher interest.
Conclusion
Deposits and savings are both banking products, but the main difference between the two is that deposits are more convenience-oriented and instantly available, while savings are more savings and interest-oriented.