You are correct. Savings provide the funds for investment. Among the most basic economic equations is S=I.
Only an economic imbecile would think savings just pile up as dollar bills in some corporate office or in a bank vault and are thus sterile. Most people have the capacity to understand this concept and reject true Keynesian theory as specious.  
This rejection of gave rise to Neo-Keynesian economics: the notion that government intervention can be used to control economic outcomes and smooth boom/bust cycles.