Savings Accounts
A savings account is used primarily for:
- Emergency cash
- To help you save money for a long-term goal
- To provide overdraft protection in case you spend all the money in your checking account–the two are electronically linked so that your savings account will pay for any overcharges
- An ideal startup program to help a child learn to save money (often allowing a lower minimum balance)
Savings accounts often feature:
- Low minimum balance requirements–around $50 to $100
- Low or no fees as long as you maintain a certain balance
- Limits on how many withdrawals you may take each month–to encourage you to save instead of spend
- Transfer privileges between your checking and savings accounts