Volatility

Your rate of return on a savings account rarely changes. It’s generally immune to market dips—but, when the market does well, you’ll be watching from the sidelines. 

Your return will vary according to the performance of the market, and when you choose to withdraw from your portfolio. Depending on your portfolio, you may earn more or less than your expected returns.

Risk

Your money is kept in cash, and it is not tied to investment risk.

Investing involves risk. The value of investments can go up or down. 

Earinings

Interest is capped, with most savings accounts earning 0.01% up to 1.50% annual interest.

An investing account has the potential to earn a considerable return — as of September 30, 2020, for example, an Aggressive ETF Portfolio with CI Direct Investing would have hypothetically returned around 7.6% annually since the portfolio was introduced.

Inflation

Most savings accounts can’t keep up with the rate of inflation. Even if your money grows with interest, by the time you withdraw it, chances are good that your money will buy you less in the future than it does today.

You can pick a portfolio that’s potential returns are more likely to beat the rate of inflation—so your investment doesn’t lose buying power even as the cost of living goes up.