Savings account is an account that earns interest on the money you deposit. There are different types of savings accounts: regular savings accounts, online savings accounts, money market accounts, and Certificate of Deposit (CD).
Savings accounts work best when used as a place to hold money. They do not earn much interest, but it is possible to find offers with up to 2.00% APY. Savings accounts give easy access to the funds, but you should remember about possible fees associated with the withdrawal transactions. Nevertheless, savings accounts are a cheap type of accounts as many fees can be avoided. Thus, monthly fees can be waived if you maintain a minimum deposit. If you perform less than six withdrawal transactions a month, you won't be charged withdrawal fees.
To open a savings account, you will need to provide some personal information and pay a minimum opening deposit (if required). Those who are under 18 will need a parent or a guardian to sign as a co-owner of the account.
Savings accounts are FDIC-insured. That means you will have your money even if the bank goes out of business (which is rare!).