Savings Account
A deposit account held at a financial institution, usually paying interest, with federal insurance covering the depositor up to $250,000 as of 2024.
Minimum opening deposit, interest rate, and monthly fees all differ by institution, so the account is a comparison, not a default.
Often confused with
- Certificate of Deposit (CD)
- A CD locks the money for a set term; a savings account lets you withdraw whenever you like.
- Checking Account
- A checking account is designed for spending; a savings account is designed to hold money and pay interest.
- Cryptocurrency
- A savings account promises a stated rate and carries federal insurance; a cryptocurrency balance promises neither.
Taught in
See also
3.1.C.2 · 3.1.C.4