Savings account


Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
Related to Savings account: current account, checking account

Savings account

A deposit account held with a financial institution that pays interest but does not allow for direct withdrawal through checks. Pays interest at a rate higher than that of checking account but lower than that of treasury bills.

Savings Account

An account at a bank in which the customer deposits money for any non-immediate use. For example, one may utilize a savings account to save funds for an expensive purchase, such as a house or a car. Because most customers keep money in a savings account for a longer period than a checking account, a savings account pays a slightly higher interest rate. However, the interest rate is not as high as a bond or another low-risk investment. Generally speaking, one may not write a check on a savings account without paying a penalty. This is to disincentivize withdrawals on savings.

Savings account.

A savings account is a deposit account in a bank or credit union that pays interest on your balance -- though some institutions require that you have at least a minimum amount in the account to qualify for earnings.

You can deposit and withdraw from savings accounts as you wish, but you can't transfer money from the account directly to other people or organizations.

While savings accounts typically pay interest at a lower rate than other bank accounts, that may not always be the case. Savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Share Insurance Fund.

You're covered up to $100,000 in each of three different categories of account in a single bank, or up to $250,000 if an account is a self-directed retirement account (IRA). Different branches of the same bank count as one bank.

savings account

see DEPOSIT ACCOUNT.
References in periodicals archive ?
However, in the Zero Balance savings account, you need not maintain a minimum balance.
The health savings account program gives taxpayers who buy eligible health coverage with minimum deductibles a chance to put cash in a special fund without paying federal income taxes on the contribution.
Paul Stokes, head of products at M&S Bank, said: "It's great that the vast majority hold savings accounts and, more importantly, half are choosing to save regularly.
These exclusions of pooled trusts and investment designations might impact the way people with disabilities are able to maximize the benefits of setting up one of these savings accounts.
For example, according to Revenue Ruling 2004-38, combining a prescription drug card with a High Deductible Health Plan will disqualify the policyholder from participating in a Health Savings Account.
Rather than raiding the piggy bank we suggest factoring these unforeseen costs into the annual budget, this way savings accounts aren't affected when emergencies crop up.
Another worry is that people will opt for the high-deductible insurance, but have nothing to invest in the health savings account to help them pay that large deductible.
Basically, medical costs are rising so fast that a health savings account simply will not be able to keep up.
Careful planning will help employers ensure that both their qualified retirement plan and health savings account are successful.
Created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, the Health Savings Account (HSA) offers advantages over other savings vehicles--it is not limited to employees of small businesses and the self-employed, the unspent balance rolls over at year-end for further use, and the account is portable because it is owned by the individual.
Nearly three-quarters of the respondents said it was very likely or somewhat likely that they would offer a high-deductible health plan with a health savings account by 2006.