The concept of savings and investment is a very important concept in economics. There are some fundamental differences between the two concepts. The differences are discussed below: 1. The portion of a person's current income that is stored for the future without being spent on consumption is called savings. On the other hand , the portion of savings that is invested in production is called investment. In other words , the portion of the savings by which additional capital is attached is called investment. 2. The scope of storage is more wide. In contrast , the scope of investment is small. 3. Savings basically indicate the initial state. In contrast , investment indicates the next state of savings. 4. In developed countries, the higher the savings, the higher the investment Underdeveloped or developing countries have less savings and less investment. 5. The formula for savings is: S = Y - C; Where , S = savings ; Y = income , C = consumption. The formula for investment is: I = Y - C; Where I = investment. If Y = C , then S = I. From this it can be said that investment will never exceed savings ; But may be equal or less.