Saving money and investing money both are better. Saving money is really important. At the same time, it is also imp to invest money for earning more money. A good money management is really very important. A good money management includes a good amount of money for saving. And 30% of the savings, should put an investment.
The type of return depends on where you put your money. If you save cash, the interest you earn will be the return. For investments, returns may be income (for example, share dividends or rent from a property) or capital gains (the difference between the price you paid for the asset and the price you sell for).