How do Savings Accounts work?

Check it out right now with more details. How it works, the best banks that offers this finance service, and much more!

Savings is nothing more than a type of bank account that allows the user to save their money. Most traditional banks offer this financial service to their customers.

In this post, we have selected the main banks and cooperatives that offer this type of financial service, there are options for all needs, in addition, they offer several benefits and attractive APYs.

On Discover Bank Online Savings page

How does it work?

Savings accounts are a great way to keep your money in a safe place. It is possible to open a savings account at a bank and credit unions.

The savings account works as follows, you deposit the money in your account, and the bank or cooperative pays you interest on the balance deposited. So, your money earns a percentage. There are several ways to deposit money into your savings account, here are some of them:

• Direct deposit;
• Cash or check deposit at the ATM;
• Direct deposit;
• ACH transfers from a linked bank account.

Each bank offers a different interest rate, so the monthly interest income may vary by bank and account type.

How much can you keep in a savings account?

One of the great advantages of keeping your money in a savings account is that there is no limit on the amount of money that you can put in a savings account.

Does it have interest rates?

Yes. Each bank has its interest rate. Check below the interest rates of the best banks we have selected for you.

• Discover Bank Online Savings: 1.80%
• LendingClub High-Yield Savings: 2.07%
• CIT Bank Savings Connect: 2.10%
• Bask Bank Saving account: 2.53%

Does it have fees?

The savings accounts we have selected do not have any fees, however, not all banks that offer this type of service are fee-free.

Who can open a saving account?

Savings accounts are suitable for all profiles, from small savers to large investors. Therefore, anyone can have access to this type of account, including minors.

How to apply for it?

It is very simple to open a savings account, see below the information you’ll be asked to provide:

• A valid, government-issued photo ID;
• Social Security number or Taxpayer;
• Phone number;
• An initial deposit;
• Phone number;
• A co-owner.

Frequently asked questions:

How much should I put in savings?

At least 20% of your income.

What is a savings account best for?

They’re a good option for emergency or short-term cash.

What are the 4 types of savings accounts?

Basic savings accounts, online savings accounts, money market savings account, and certificate of deposit account.