An account that earns interest and is used to meet financial goals is a savings account.
Savings Account Overview
A savings account is a type of account at a bank or credit union designed to help you save your money while letting your balance grow by earning interest. The interest rates can vary based on the account and financial institution, but the main purpose is to keep your money safe while it grows over time.
Key Benefits
- Savings accounts are specifically intended to meet your financial goals, whether it's for emergencies, future purchases, or other long-term plans.
- Your money earns interest, which is paid regularly by the bank for keeping your funds deposited.
- Many savings accounts are easily accessible, allowing you to withdraw funds when needed without losing the earned interest.
Common Types
- Traditional savings accounts
- High-yield savings accounts
- Money market accounts
- Certificates of deposit (CDs)
All these options are forms of savings accounts, designed to help you reach your financial goals while earning interest on your deposited funds.
