A savings account is a bank account at a retail bank whose features include the requirements that only a limited number of withdrawals can take place, it does not have cheque facilities and usually do not have a linked debit card facility, it has limited transfer facilities and cannot be overdrawn. Traditionally, transactions on savings accounts were widely recorded in a passbook, and were sometimes called passbook savings accounts, and bank statements were not provided; however, currently such transactions are commonly recorded electronically and accessible online.
People deposit funds in savings accounts for a variety of reasons, including as a safe place where to hold their cash. Savings accounts normally pay interest. A number of countries require savings accounts to be protected by deposit insurance and some countries provide a government guarantee for at least a portion of the savings account balance.
There are a number of types of savings accounts for particular purposes, such as for young savers, for retirees, Christmas club accounts, investment accounts, money market accounts, besides other. Some accounts require a minimum deposit, a deposit on a regular basis, notice of withdrawal, and other special conditions.
Almost all savings accounts accrue compound interest over time.