What is a savings account?

A savings account is a type of deposit account that allows you to keep money safe and withdraw money while typically earning interest. Savings accounts are available at banks, credit unions and other financial institutions.

Savings accounts are a safe place to store your money for short-term use. They are usually insured by the National Credit Union Administration (NCUA) at credit unions or the Federal Deposit Insurance Corporation (FDIC) at banks. And, they provide easy access to your money, making them a good spot to hold an emergency fund or savings for a large purchase in the near future.

Savings accounts may have limits on the number of monthly withdrawals and are meant to hold your money for longer than a checking account.