What is a Savings Account?
A savings account typically refers to an account in which one places money to earn a small amount of interest. Unlike a 401k or an IRA, the savings account funds are usually easily accessible, though some banks do charge for withdrawing money early. In most cases, people can withdraw money from a savings account at any time, at least at any time the bank is open, or one has access to the bank’s ATM. The term “bank” is used here loosely. Not only banks, but also credit unions, and money market funds companies can offer a savings account to customers. In addition to earning interest on your deposits, the savings account also provides a safe place to put your money, far better than stowing it in the mattress or the cookie jar. If the bank declares bankruptcy, is the target of embezzlement or mismanagement of funds, the Federal Deposit Insurance Corporation (FDIC) insures your account, up to 100,000 US dollars (USD). In fact, a requirement when shopping for a savings account is to look for