Savings Account

FinanceSource: Personal-finance fundamentals

An account where you keep money you have chosen to save.

Example

Maya puts $20 from her weekend job into a separate account each Friday. After five weeks, she has saved $100 there.

How it fits in

Savings accounts differ in when you can withdraw and how much interest they pay. An easy-access account lets you withdraw whenever you need. A notice account requires advance warning. A fixed-term account keeps the money until an agreed date.

Where this is taught

B2.3 Bank Accounts, Interest and Fees

Practise it on the platform

Explore Savings

Related terms

Compound Interest

When the money you earn from saving starts earning its own money on top.

Simple Interest

Interest paid only on the original amount, never on the interest you have already earned.

Needs vs Wants

Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.