Energy possessed by a body due to its position or state of motion is called mechanical energy.
The energy possessed by a body due to its motion is called kinetic energy. A bullet fired from a gun, a moving car, a flying bird all have kinetic energy.
Potential energy is the energy possessed by an object due to its position or configuration. The water stored in a dam, a stretched bow, and a compressed spring all has potential energy.
Potential energy and kinetic energy are two kinds of mechanical energy.