Saving vs. Investing
Saving vs. Investing: What's the Difference?
Which type of account you choose depends on your goals, timeline and risk tolerance—whether you think you’ll need it in the near future or can leave it to grow over time. Here's a brief comparison of typical saving vs. investing features.
Saving
- Allows you to easily access your money and earns dividends
- Great for unexpected expenses and savings you plan to spend (emergencies, house, car, vacation)
- Guaranteed returns
Investing
- Allows you to buy assets with value, like stocks (part of a company), bonds or funds (mutual, index, exchange traded) with the expectation that you’ll earn money
- Great for mid-term and longer-term goals like building wealth, saving for tuition and retirement
- Higher risk, but potential for higher returns
What Are Your Goals?
Now that you understand how saving vs. investing works, here are some examples of accounts that can help you get started.
| Create an Emergency Fund | Save for Specific Things | Start Investing |
|---|---|---|
Open a Basic Savings account
|
Open a Special EasyStart℠ CertificateFootnote 1
|
Enroll in Digital InvestorFootnote 2
|
Make It Automatic
One thing many successful savers and investors have in common is that they add money to their accounts regularly. You can set up automatic transfers, then relax while we do the rest.
You’ll be able to:
- set the dollar amount you want and change it easily
- choose when and how often you transfer
- cancel anytime
- Tip: If you’re wondering about the best time to set your transfer, pick a day or 2 after your pay day.
Your Contributions Can Add Up
(Totals do not include dividends/interest earned.)
| Weekly Contribution | Annual Earnings |
|---|---|
| $5 per week | $260 per year |
| $10 per week | $520 per year |
| $20 per week | $1,040 per year |
Disclosures
Limit one Special EasyStart Certificate per member. The Special EasyStart Certificate has a $50 minimum balance and a $3,000 maximum contribution limit. Additional deposits are allowed at any time subject to the maximum contribution limit. Certificate owner(s) age 18 and older must have a direct deposit* and a Navy Federal checking account within 90 days of the certificate issue date. If these requirements have not been satisfied by the 90th day, your Special EasyStart Certificate dividend rate will be adjusted to the prevailing dividend rate of the 12-month EasyStart Certificate for the remainder of the certificate's term. At maturity, the Special EasyStart Certificate will automatically renew and any amount exceeding the $3,000 maximum contribution limit will be transferred to your Membership Savings Account unless instructed otherwise.
*You may qualify for direct deposit if you have (1) a recurring ACH from employer, military pay, or certain government agency pay or benefits in your name that is deposited into a Navy Federal deposit account where you are Primary or Secondary Owner; OR (2) Mobile deposits, ATM deposits, or Branch deposits totaling at least $500 and recurring for at least three out of four consecutive months that are deposited into Navy Federal deposit accounts where you are Primary Owner; OR (3) monthly Non-payroll ACH or payroll allotment totaling at least $500 and recurring for at least three out of four consecutive months that are deposited into Navy Federal deposit accounts where you are Primary Owner; OR (4) monthly Non-payroll ACH or payroll allotment totaling at least $500 and recurring for at least three out of four consecutive months that are deposited into Navy Federal deposit accounts where you are Secondary Owner.
↵Navy Federal Financial Group, LLC (NFFG) is a licensed insurance agency. Non-deposit investments, brokerage, and advisory products are only sold through Navy Federal Investment Services, LLC (NFIS), a member of FINRA/SIPC and an SEC-registered investment advisory firm. NFIS is a wholly owned subsidiary of NFFG. Insurance products are offered through NFFG and NFIS. These products are not NCUA/NCUSIF or otherwise federally insured, are not guaranteed or obligations of Navy Federal Credit Union (NFCU), are not offered, recommended, sanctioned, or encouraged by the federal government, and may involve investment risk, including possible loss of principal. Deposit products and related services are provided by NFCU. Financial Advisors are employees of NFFG, and they are employees and registered representatives of NFIS. NFIS and NFFG are affiliated companies under the common control of NFCU. Call 1-877-221-8108 for further information.
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