Savings account

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.

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Related Terms

• Account
• Account holder
• ATM card
• Bank
• Bond
• Cash
• Certificate of deposit
• Checking account
• Credit union
• FDIC
• Federal Deposit Insurance Corporation
• Interest
• Liquid asset
• Overdraft protection
• Principal

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