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.