Savings accounts are deposit accounts offered by banks and credit unions. They are insured by the Federal Deposit Insurance Corporation, making them safe for risk-averse savers.

Savings accounts are basic low or no-fee deposit accounts offered by most banks and credit unions as well as online-only banks. Savings accounts are insured against loss by the Federal Deposit Insurance Corporation, making them suitable for even the most risk-averse savers.
Savings accounts are highly liquid – savers can reliably access their money within a day or less. However, they typically do not come with check-writing privileges or debit cards, and many have limits on the number of monthly transactions.
Savings accounts’ biggest limitation is the low interest rates they pay compared to investment alternatives. Even the highest-paying savings accounts pay interest rates that are just a fraction of the 10% annual average returned by the S&P 500 index of large-company stocks over the last century. Savings account interest doesn’t keep up with inflation, meaning money in a savings account will lose purchasing power over time.