Capital savings are useles by themselves. Only when they are harnessed productively do they gain economic significance. Such utilization may take the form of either direct or indirect investments.
- Capital savings can be used directly by, for example, a couple investing their savings in a home; a government investing in a new highway or hospital, or a domestic or foreign company paying start-up costs for a plant to produce a new product.
- Capital savings can also be harnessed indirectly through the purchase of such representational items as stocks, bonds or mutual funds or through the deposit of savings in a financial institution.