Examples of savings account in a Sentence
She opened a savings account.
Recent Examples of savings account from the Web
One of those provisions would allow 529 savings accounts, which are now used for college tuition, to help finance home schooling.
In a last-minute glitch, however, Democrats said three provisions in the bill, including one that would allow parents to use college savings accounts for home-schooling expenses for young children, violate Senate budget rules.
Dependent care accounts: At one point, the House had proposed eliminating workplace dependent care savings accounts that allow employees to put away $5,000 free of income taxes each year.
For the first time, employees also will have the option to open a health savings account, according to the news release.
Without checking or savings accounts, an average full-time worker can spend $40,000 over a lifetime just to cash checks.
Interest rates on money markets and savings accounts have remained low.
Try looking into a high-yield online savings account.
The White House also wants to see expanded use of health savings accounts, the document says, increasing contribution limits and letting the accounts be used in more ways.
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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