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A savings account is a basic type of bank account that allows you to deposit money, keep it safe and withdraw funds. Savings accounts offered by most banks, credit unions, and other financial institutions are FDIC insured and typically pay interest on your deposits.
Savings accounts do not pay a high rate of interest on deposits. They are a good place to save for short-term goals or keep cash for emergencies. Once you’ve built up some savings, look at other options for making your money earn more.
If you really need access to your cash (and you still want to earn interest), you might get what you need from a checking account that pays interest. Traditional checking accounts don’t pay interest, but some types of accounts allow you to earn and spend as often as you want.