Savings account
An interest-bearing account designed to keep savings accessible with generally limited risk.
Definition
An interest-bearing account designed to keep savings accessible with generally limited risk.
Why this concept matters
It can hold an emergency fund or money for a near-term goal.
What to watch
The rate, limit, tax treatment and guarantee depend on the account and may change.
Simple example
Keeping three months of expenses in a savings account makes the reserve quickly accessible.
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