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Nested classes are simply static inner classes. The difference between nested classes and inner classes is the same as the difference between static and nonstatic members of a class: nested classes are associated with the enclosing class itself, whereas inner classes are associated with an object of the enclosing class.
Because of this, inner class objects require an object of the enclosing class, while nested class objects do not. Nested classes, therefore, behave just like top-level classes, using the enclosing class to provide a package-like organization. In addition, nested classes have access to all members of the enclosing class.