{"id":24823,"date":"2026-04-30T10:07:06","date_gmt":"2026-04-30T10:07:06","guid":{"rendered":"https:\/\/incredipros.com\/?p=24823"},"modified":"2026-04-30T10:07:08","modified_gmt":"2026-04-30T10:07:08","slug":"what-is-a-savings-account","status":"publish","type":"post","link":"https:\/\/incredipros.com\/?p=24823","title":{"rendered":"What Is a Savings Account?"},"content":{"rendered":"
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When it comes to where you put your money, you probably have a checking account. But what about a savings account? Maybe you\u2019re thinking: What savings . . . my money disappears as fast as it comes in!<\/em> But a savings account isn\u2019t a bad thing to have\u2014in fact, it can help you meet your money goals.\n <\/p>\n

Here\u2019s what you need to know . . .\n <\/p>\n

What Is a Savings Account?<\/h2>\n

A savings account is a type of bank account that earns a higher rate of interest on your money than you\u2019d see in a checking account. And anything that speeds up your wealth building is an upgrade. Savings accounts are secure, too\u2014they\u2019re federally insured up to $250,000\u2014which means you\u2019d be covered for up to that amount if your bank ran into trouble for any reason. This security makes them less of a risky prospect compared to other types of investment accounts.\n <\/p>\n

How Does a Savings Account Work?<\/h2>\n

Opening a savings account isn\u2019t that different from opening a checking account. You can visit a branch of a bank or open a bank\u00a0account online. After providing your personal details, you\u2019ll make your first deposit via check, money order, or cash deposit. It doesn\u2019t have to be a lot\u2014in fact some banks offer savings accounts with a no-minimum deposit. Just having it open and funded is a small step in the right direction!\n <\/p>\n

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Get expert money advice to reach your money goals faster!<\/p>\n<\/p><\/div>\n

Then, every month (or quarter, depending on the bank) you\u2019ll earn interest on the balance in your account. So the more you have, the more interest you earn: a great reason to keep saving! But don\u2019t let the small start fool you. Saving is winning\u2014especially when interest helps your money grow over time.\n <\/p>\n

Always read the small print before you sign though. Some banks might draw you in with a high interest rate that lasts a few months\u2014and then drops off a cliff! Ask about the interest rate and how long it\u2019s in place for.\u00a0\u00a0\n <\/p>\n

Online savings accounts might offer higher interest rates compared to your physical branch down the road\u2014and that\u2019s because they don\u2019t have the same overheads. Just make sure any type of bank you opt for is insured by the FDIC (Federal Deposit Insurance Corporation). \u00a0\n <\/p>\n

How Is a Savings Account Different From a Checking Account?<\/h2>\n

Checking accounts are busy places! Your salary goes in, your bills come out, there are ATM cash withdrawals and everything else you\u2019re using your debit card for. But a savings account is designed for the long haul. You\u2019re moving money into it regularly and not withdrawing from it very often (because you\u2019re saving!).\n <\/p>\n

How Does Coronavirus Impact Savings Account Withdrawals?<\/h2>\n

In the midst of all the tough news around the coronavirus, here\u2019s some hope: the federal government wants to make it easier for you to use your savings in response to the urgent need for ready cash that many are experiencing.\n <\/p>\n

The Federal Reserve has announced an interim change to an old rule that used to limit transfers and withdrawals from savings accounts to six per month. For now, that restriction is lifted! Thanks (we guess) for letting us use our money however we want!\n <\/p>\n

But we want to call out a couple of big things:\n <\/p>\n