Examples of savings account in a Sentence
She opened a savings account.
Recent Examples of savings account from the Web
Others might expand health savings accounts or institute more-sensible regulations.
In lieu of a robust Medicaid program, Republicans are offering patients a mix of tax credits to purchase plans on the private market and bigger incentives to use health savings accounts.
Their proposal would let workers put more of their pre-tax incomes into 401(k) retirement savings accounts.
WASHINGTON — Education Secretary Betsy DeVos’ school-choice agenda is getting a bit of a boost from the Republican tax bill, which would allow parents to use education savings accounts to pay tuition at private elementary and secondary schools.
Find a bank or credit union that offers free savings accounts and set up an account that is just for your emergency fund.
What’s in Last Republican Shot to Kill Obamacare But the bill would repeal three smaller taxes: a 2.3 percent sales tax on medical devices, a tax on over-the-counter medication and levies on contributions to health savings accounts.
After Harvey hit, Gov. Greg Abbott hesitated to appropriate state funds for the recovery – including tapping its $10 billion savings account (known as the Rainy Day Fund).
For example, in 1984 the government of Singapore initiated Medisave, a mandatory health-savings account compulsory for all employees and the self-employed who are citizens or permanent residents.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'savings account.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
First Known Use of savings account
Financial Definition of SAVINGS ACCOUNT
What It Is
A savings account is a low-risk, interest-bearing deposit with a bank or other financial institution.
How It Works
Technically, savings accounts are time deposits, meaning that a bank can require the account holder to give notice before withdrawing the funds or impose a penalty for withdrawal before a specified date. Banks do not generally exercise this right, but institutions restrict the number of transactions allowed in and out of a savings account per month. Also, they may charge fees that vary with the average balance in the account. Institutions do not usually provide checks for savings accounts.
The interest rates on savings accounts vary by institution but are generally lower than interest rates on longer-term deposits, such as CDs or money market accounts. Interest is usually compounded monthly.
It is important to note that the interest rate paid on a savings account may be below the inflation rate, meaning that the account actually might lose purchasing power over time despite the interest earned.
Aside from the traditional savings account described here, the United States and other countries allow certain people to open special savings accounts, such as Health Savings Accounts or Coverdell Education Savings Accounts. Investors use these unique savings accounts to pay for specific items and they have special rules and tax implications.
Why It Matters
Savings accounts are conservative, low-risk investments because the Federal Depository Insurance Corporation typically insures the accounts (up to a limit) and account owners can access their funds easily. For these reasons, the interest rate on savings accounts tends to be lower than riskier or longer-term investments such as CDs, mutual funds, or corporate bonds.
SAVINGS ACCOUNT Defined for English Language Learners
Definition of savings account for English Language Learners
: a bank account in which people keep money that they want to save
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