Savings account

Saving accounts (UK: savings accounts) are accounts maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium of exchange (for example, by writing a cheque). These accounts let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and, in some jurisdictions, does not incur a reserve requirement. Cash in the bank's vaults may thus be used, for example, to fund interest-paying loans.

The other major types of deposit account are the transactional account (usually known as a "checking" (US) or "current" (UK) account), money market account and time deposit.

Regulations

In the United States, under Regulation D, 12 (CFR) §204.2(d)(2), the term "savings deposit" includes a deposit or an account that meets the requirements of Sec. 204.2(d)(1) and from under the terms of the deposit contract or by practice of the depository institution, the depositor is permitted to make up to six pre-authorized transfers or withdrawals per month or a statement cycle of at least four weeks. There is no regulation limiting number of deposits into the account.