Basically saving is a passive way to insure the safety of the principal, and though it accrues interest, it is less concerned with return. Investing on the other hand, is a more aggressive and proactive way to use your money in order to make even more money; you want your money to work for you. Unlike savings, the focus of an investment is on the return which is based on the level of risk involved. Risk can range from conservative to very aggressive. Sometimes it can be difficult to distinguish between saving and investing; however, there are three characteristics that set investing in stocks apart from saving: ownership, upside potential, and risk.

Ownership. Buying or investing in stock makes you a part owner of a company which  gives you certain rights, such as, voting and receiving dividends. There is no means of saving available that gives you ownership. For example, you may own a bank CD but you don't own part of the bank.

Upside Potential. When you invest in stock, you do so because you are betting that the company will grow, increasing the value of both the company and its stock. Savings on the other hand, gives you a more consistent rate of return. A CD paying a rate of 3% will continue to pay 3% regardless of how well the bank is doing.

Risk. Because of the potential risk involved in investing, the potential for reward is also higher. And because of the security associated with saving, the return is much lower. It is up to you to decide how much risk you feel comfortable with.