A savings account is a deposit account held at a retail bank that pays interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. This account is followed by another account known as Fixed deposit account.
The other major types of deposit accounts are the transactional account (usually known as a "checking" (US) or "current" (UK) account), money market account, and time deposit.
Regulations
United States
In the United States, the term "savings deposit" includes a deposit or an account that meets the requirements of Sec. 204.2(d)(1) of Regulation D (FRB). The depositor is permitted to make up to 6 pre-authorized transfers or withdrawals (excluding withdrawals via an automated teller machine) per month or a statement cycle of at least four weeks. There is no regulation limiting number of deposits into the account. Violations of Regulation D often involve a service charge, usually $10 per transaction, or even a downgrade of the account to a checking account.
A savings account linked to a checking account at the same financial institution can help prevent fees due to overdrafts and reduce banking costs.
References
External links
![Targeted] Bank of America Up To $500 Savings Bonus - Doctor Of Credit](https://lh3.googleusercontent.com/blogger_img_proxy/AEn0k_uQYhUotWJ4Kl2sUtwth0Z0LYKr2mBFnADeJiU3KagOZ9bTa-eKQ19q16HM63icVGWFgJ9XddqFk-lzIBSZC7VNVcHEAlhw-g6Vc_2cq0En8bkYHmdVK5dJxztE9WdLUrtYuAJ3NPncTMQc_JKSLwzm_V2dCUV8iEd9C2mvuXhhi5UhagO57w=s0-d "Targeted] Bank of America Up To $500 Savings Bonus - Doctor Of Credit")
- Savings Account Definition | Investopedia
- What is a Savings Account - NerdWallet
