A savings account is an account held at a bank or credit union in which the interest rate paid to the account holder is typically higher than that of a checking account, but lower than that of less liquid assets, such as bonds or certificates of deposit (CD's). A savings account does not have the advantage of check writing one would enjoy with a checking account, and has some withdrawal limits, but the principal is protected by FDIC insurance, and the money can be accessed in other ways, such by linked overdraft protection to a checking account or ATM card.
Related Fool Articles
- Account holder
- ATM card
- Certificate of deposit
- Checking account
- Credit union
- Federal Deposit Insurance Corporation
- Liquid asset
- Overdraft protection
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