Savings Account
Savings accounts are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a check). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and in some jurisdictions, does not incur a reserve requirement, freeing up cash from the bank's vault to be lent out with interest.
The other major types of deposit account are transactional (checking) account, money market account, and time deposit.
Read more about Savings Account: Regulation, Costs, Online Savings Accounts
Famous quotes containing the word account:
“To have some account of my thoughts, manners, acquaintance and actions, when the hour arrives in which time is more nimble than memory, is the reason which induces me to keep a journal: a journal in which I must confess my every thought, must open my whole heart!”
—Frances Burney (1752–1840)