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.
Mentioned in ?
References in periodicals archive ?
However, in the Zero Balance savings account, you need not maintain a minimum balance.
Know the benefits of Zero Balance Savings account
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.
HSAs and FSAs lose election attention war
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.
It's hol about regular saving if you want to escape that rainy day; The big issue
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.
Special savings accounts deposit a more secure future for people with disabilities
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.
Health savings accounts: a way to help pay for health care cost
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.
PERSONAL FINANCE: Savings raid to flee the chill
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.
Power to the patient: can high-deductible plans and health savings accounts lower premium costs and replace the traditional goal of comprehensive insurance?
Basically, medical costs are rising so fast that a health savings account simply will not be able to keep up.
HEALTH ACCOUNTS ON RISE BUT SAVINGS PROGRAM COULD BACKFIRE, EXPERTS SAY
Employers can match employee health savings account contributions, but less generously than the qualified retirement plan match.
HSAs and retirement plans: employers should tailor their contributions to health savings accounts and qualified retirement plans to ensure they complement rather than cannibalize each other
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.
The Adviser's Guide to Understanding Health Savings Accounts
What is a health savings account (HSA) program, and what can it do for my business?
Weighing the HSA healthcare remedy: health savings accounts are quite new, and their purported advantages aren't well known to many companies. An HSA expert talks about how they work and what they can offer
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.
Health savings accounts set to boom

Financial browser ?
Full browser ?