A savings account is a type of bank account designed to help people set aside money while earning interest. Unlike chequing accounts, which are meant for daily transactions, savings accounts encourage long-term money management.
Key Features
- Interest earnings: Savings accounts typically pay interest, helping your money grow over time.
- Limited transactions: They are not designed for frequent withdrawals or payments.
- Safety: Deposits are generally insured by government programs (up to certain limits).
Why It Matters
Savings accounts provide a safe and accessible place to store money for short- and medium-term goals. While interest rates are usually modest, they are ideal for building an emergency fund or saving for upcoming expenses.
Final Thoughts
A savings account balances security and accessibility. It’s best used for money you want to keep safe and liquid, rather than for long-term investments.