Examples of savings account in a Sentence
She opened a savings account.
Recent Examples of savings account from the Web
An individual from the 400 block of Sunset Lane reported at 4:01 p.m. on May 8 that someone obtained $2,500 from a savings account and tried to open unauthorized accounts at two separate banks, police said.
Middletown has received a AAA credit rating since 2016, and one of the many components to keeping that rating is maintaining a healthy municipal savings account.
Seventy ninth-grade students were give college savings match incentive scholarships, which establishes a college savings account seeded with $50 for each of them.
While the audits will likely be appealed and settled for some lower number, the money helps replenish a state savings account that has helped Alaska shrink its multibillion-dollar deficits.
In desperation, patients have sold homes, drained savings accounts, and launched crowdfunding campaigns, sometimes spending their last days and dollars with the clinic.
Put another way, the permanent school fund is like a savings account for public education, while the available school fund is a checking account that pays for instructional costs.
This money needs to be easily accessible, in a checking or savings account, but also somewhere you're not tempted to skim dollars to pay for day-to-day stuff.
Nothing to lose Residents of some Nebraska counties gained access to special raffle-reward savings accounts.
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.
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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