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Savings account

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(October 2013) ()

A savings account is a bank account at a retail bank. Common features include a limited number of withdrawals, a lack of cheque and linked debit card facilities, limited transfer options, and the inability to be overdrawn. Traditionally, transactions on savings accounts were widely recorded in a passbook, and were sometimes called passbook savings accounts, and bank statements were not provided; however, currently such transactions are commonly recorded electronically and accessible online.

People deposit funds in savings account for a variety of reasons, including a safe place to hold their cash. Savings accounts normally pay interest as well: almost all of them accrue compound interest over time. Several countries require savings accounts to be protected by deposit insurance and some countries provide a government guarantee for at least a portion of the account balance.

There are many types of savings accounts, often serving particular purposes. These can include accounts for young savers, accounts for retirees, Christmas club accounts, investment accounts, and money market accounts. Some savings accounts also have other special requirements, such as a minimum initial deposit, deposits made regularly, and notices of withdrawal.

Contents

United States

An advertisement for an early 20th century Toledo bank for a 4% interest rate on savings accounts

In the United States, Sec. 204.2(d)(1) of Regulation D (FRB) previously limited withdrawals from savings accounts to six transfers or withdrawals per month, a limitation which was removed in April 2020, though some banks continue to impose a limit voluntarily as of 2021. There is no limit to the number of deposits into the account. Violations of the regulation may result in a service charge or may result in the account being changed to a checking account.

Regulation D sets smaller reserve requirements for savings account balances. In addition, customers can plan withdrawals to avoid fees and earn interest, which contributes to more stable savings account balances on which banks can lend. A savings account linked to a checking account at the same financial institution can help avoid fees due to overdrafts and reduce banking costs.

High yield savings accounts

High yield savings accounts, sometimes abbreviated to HYSA, are a type of savings account with higher interest than normal savings accounts. These accounts typically earn 10 times more in interest than a normal savings account. HYSAs can be a good option for short-term investing.

  1. "Banks Were Allowed to Give People More Access to Savings in the Pandemic". New York Times. Retrieved13 August 2021.
  2. Amy Fontinelle. "Banking: Savings Accounts 101".
  3. Knueven, Liz. "The only difference between regular and high-yield savings that matters is the one that earns you 10 times more on your money". Business Insider. Retrieved30 December 2020.
  4. Gravier, Elizabeth (22 June 2020). "What a high-yield savings account is and how it can grow your money". CNBC. Retrieved30 December 2020.
  5. Karl, Sabrina. "What Is a High-Yield Savings Account?". Investopedia. Retrieved30 December 2020.


Savings account
Savings account Language Watch Edit This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Savings account news newspapers books scholar JSTOR October 2013 Learn how and when to remove this template message A savings account is a bank account at a retail bank Common features include a limited number of withdrawals a lack of cheque and linked debit card facilities limited transfer options and the inability to be overdrawn Traditionally transactions on savings accounts were widely recorded in a passbook and were sometimes called passbook savings accounts and bank statements were not provided however currently such transactions are commonly recorded electronically and accessible online People deposit funds in savings account for a variety of reasons including a safe place to hold their cash Savings accounts normally pay interest as well almost all of them accrue compound interest over time Several countries require savings accounts to be protected by deposit insurance and some countries provide a government guarantee for at least a portion of the account balance There are many types of savings accounts often serving particular purposes These can include accounts for young savers accounts for retirees Christmas club accounts investment accounts and money market accounts Some savings accounts also have other special requirements such as a minimum initial deposit deposits made regularly and notices of withdrawal Contents 1 Regulations 1 1 United States 1 1 1 High yield savings accounts 2 References 3 External linksRegulations EditUnited States Edit An advertisement for an early 20th century Toledo bank for a 4 interest rate on savings accounts In the United States Sec 204 2 d 1 of Regulation D FRB previously limited withdrawals from savings accounts to six transfers or withdrawals per month a limitation which was removed in April 2020 though some banks continue to impose a limit voluntarily as of 2021 1 There is no limit to the number of deposits into the account Violations of the regulation may result in a service charge or may result in the account being changed to a checking account Regulation D sets smaller reserve requirements for savings account balances In addition customers can plan withdrawals to avoid fees and earn interest which contributes to more stable savings account balances on which banks can lend A savings account linked to a checking account at the same financial institution can help avoid fees due to overdrafts and reduce banking costs 2 High yield savings accounts Edit High yield savings accounts sometimes abbreviated to HYSA are a type of savings account with higher interest than normal savings accounts These accounts typically earn 10 times more in interest than a normal savings account HYSAs can be a good option for short term investing 3 4 5 References Edit Banks Were Allowed to Give People More Access to Savings in the Pandemic New York Times Retrieved 13 August 2021 Amy Fontinelle Banking Savings Accounts 101 Knueven Liz The only difference between regular and high yield savings that matters is the one that earns you 10 times more on your money Business Insider Retrieved 30 December 2020 Gravier Elizabeth 22 June 2020 What a high yield savings account is and how it can grow your money CNBC Retrieved 30 December 2020 Karl Sabrina What Is a High Yield Savings Account Investopedia Retrieved 30 December 2020 External links Edit Banks portal Savings Account Definition Investopedia Savings Accounts Regulation D MoneyRates com What is a Savings Account NerdWallet 1 This bank and insurance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Savings account amp oldid 1042634401, wikipedia, wiki, book,

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