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_usrRSKeEVVYRmk8c_1_lqcFy6VvZt5vyttGrESgXlFjilrHtOdNlzMBMsB2MoV3vKz1l2HCG9Pe8_ZTNqGs0hwA8wrDmNPHIzM2TL3c8iE05e6Bzz_OeQXrcYyAfsWzvQ4KOupddB1WHarTAJX054S0rJkOf7mxWyg_s9gkI6hU2W7e8heAw=s0-d "Targeted] Bank of America Up To $500 Savings Bonus - Doctor Of Credit")
- Savings Account Definition | Investopedia
- What is a Savings Account - NerdWallet
