savings


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Related to savings: savings account, Savings Bonds

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

the proportion of income of a person (personal saving), company or institution (retained profits) that is not spent on current consumption. Savings are typically placed on deposit with a BANK, BUILDING SOCIETY, etc., or used to acquire financial and physical assets such as SHARES or plant. By forgoing immediate spending on consumption, savers seek to augment their future income through dividends, interest and rent receipts and through capital appreciation.

In real terms, savings are important in that they finance physical INVESTMENT in the economy, enabling a country to increase its CAPITAL STOCK and hence its overall capacity to produce a greater volume of products. See FINANCIAL SYSTEM, NATIONAL SAVINGS CERTIFICATE.

References in periodicals archive ?
If the client itemizes deductions, paying down a loan with deductible interest provides a risk-free rate of return effectively equal to the loan's interest rate minus the marginal rate of tax savings forgone.
Accumulation products and services address the need to invest and manage longer-term savings and will be more important in five years or so, when health savings accounts have been in place long enough to have generated a critical mass of roll-over capital.
The ESCO, as an expert in energy technology, will (ideally) propose the most cost-effective ECMs based on installation cost and resultant energy savings.
Manufacturers at the time were still using the hospitality industry as the model and were claiming 100% savings on hot water usage.
The conversion of Emerald from a bank to a savings association would occur before the merger.
If there are higher credits for Phase II, there may be savings created by competition, not just a tax reduction.
Thus, for many people, the biggest source of savings is their tax preferred employment retirement plan.
This tax increase will add to the tax advantage of tax-deferred savings of greater fund accumulations than under taxed investments.
While overall investing strategies include conservative, aggressive and moderate approaches," explains Johnson, "I believe everyone should take a conservative view to saving for college because of what is at stake.
Abkemeier said smart investors deploy their savings dollars in a way that makes the best use of tax-advantaged vehicles--employer-sponsored plans, followed by Individual Retirement Accounts and nonqualified savings plans that are funded with already-taxed money and offer deferral of taxes on earnings.
A federal judge on Friday night ordered the government to pay nearly $909 million to a California savings association that nearly went bankrupt after Congress and the Bush administration imposed tougher accounting changes on the industry a decade ago.