A savings account is an account maintained by a bank that earns interest.

Many people open savings accounts for saving money. Setting aside a small amount of money into a savings account is a great way to save for a family vacation, a new car, money for college, or money for retirement. No matter what you want to save for, a savings account is an easy vehicle for saving.

When choosing a savings account, there are many different things to consider. Some of these include choosing a bank that has the services that you need and want and comparing interest rates, minimum balance requirements, and fees that you may incur during your account's lifetime.

When you are ready to open a savings account, you should choose a bank in your local area to open your account with. You will need proof of your identity, such as a driver's license or identification card or social security card. You will have to fill out an application and some banks require a deposit to be made into the account in order for it to be opened. Some savings accounts can be opened for a small amount.

There are many facts to consider when choosing to put your money in a savings account. Your money is much safer in a savings account than keeping it in the house. In a savings account, your money is insured up to $100,000 through the Federal Deposit Insurance Corporation (FDIC). This simply means that even if a bank goes out of business, you will not lose your money that was in the account. The federal government created the FDIC in the 1920s to make sure that people did not lose their money in case a bank went out of business.

The one downside with savings accounts is that the interest rate tends to be lower than other alternatives such as CDs or money market funds.