What is a Savings Account?
A savings account is an account that financial institutions such as banks or credit unions offer people to help them save money over a period of time. Savings accounts usually include the following features: • They pay you interest on the money you save. • There is no set monthly fee. Instead, you pay a fee for every transaction you make. • They are a safe place to keep your money. The amount of interest you will earn on the money in your savings account will vary — depending on the financial institution, the type of savings account you have and the amount of money you keep in your account. • Some accounts do not require you to keep a minimum balance, and will pay you interest regardless of how much money you have in your account. Also, you earn interest on every dollar you save. • With some accounts, the interest rate may increase, once your savings go above a certain amount, for example, $1,000. • With some institutions, you must keep a minimum amount in your account — this is called
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