Definition
A bank account designed to help you save money while earning interest, ideal for building an emergency fund or reaching savings goals.
What to consider
- Choose one with competitive interest and low fees.
- Set up automatic deposits to keep your savings growing.
- Review it periodically to see if you’re meeting your goals.
Real world scenarios
- Paolo sets up an automatic transfer of $50 per week into his savings account, gradually building a robust safety net.
- Reviewing interest rates, Diane moves her emergency fund to a savings account offering a higher APY. She appreciates the added earnings with minimal risk.
- Jacob labels his savings account “Vacation Fund,” motivating him to skip small indulgences so he can afford a dream trip sooner.
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