savings


Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Idioms, Encyclopedia, Wikipedia.
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.

Mentioned in ?
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.
The best use of spare cash: tax-savvy strategy for extra dollars
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.
A whole new world: consumer-driven health plans and health savings accounts are blurring the line between health care and financial services
The ESCO, as an expert in energy technology, will (ideally) propose the most cost-effective ECMs based on installation cost and resultant energy savings.
Maintaining a viable energy savings performance contract
Manufacturers at the time were still using the hospitality industry as the model and were claiming 100% savings on hot water usage.
Steps toward energy savings. (Feature Article)
The conversion of Emerald from a bank to a savings association would occur before the merger.
Order Approving the Acquisition of a Savings Association
If there are higher credits for Phase II, there may be savings created by competition, not just a tax reduction.
Electricity deregulation: Phase II and beyond
Thus, for many people, the biggest source of savings is their tax preferred employment retirement plan.
Taxing consumption only: identifying the issues
This tax increase will add to the tax advantage of tax-deferred savings of greater fund accumulations than under taxed investments.
Tax-deferred savings plans
In general, savings bonds are exempt from state and local taxes.
Getting a bang from bonds: savings bonds - from zeros to EES - stand to offer great, safe rewards
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.
Annuity writers downplay fears over Bush proposals. (Briefing)

Financial browser ?
Full browser ?