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Savings Account Definition

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Definition:

An account used to deposit money at a bank or credit union and earn interest on the account over time. Money can be added or removed from the account by visiting the bank. Usually you can add or withdraw funds at any time; there is no cost to do so. Banks may require a minimum to open or maintain the account.

This type of account is often the easiest account for children to open. Because of its simplicity, it is the first account for many people and is used by all ages. After children open a savings account, the next account they often open is a checking account.

Helpful Savings Account Information:

Also Known As: Passport savings or statement savings.
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