A savings account is a deposit account provided by banks or credit unions that earns interest on your balance while offering easy access to your funds. It’s ideal for storing money for short-term goals or emergency savings.
Safety and Security
- Typically insured by government agencies (e.g., FDIC in the U.S. up to $250,000 per depositor per bank).
Interest Rates
- Offers a modest interest rate, which may vary between institutions and fluctuate with economic conditions.
Liquidity
- Allows easy withdrawals and deposits, but there may be limits on the number of monthly withdrawals.
Low Minimum Balance Requirements
- Many banks require low or no minimum balance to open an account.