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Glossary

Savings account

A deposit account at a bank or credit union, paying interest at a rate that can change, with deposits insured up to $250,000 per depositor, per insured bank or credit union, per ownership category.

Updated September 15, 2026

A savings account is a deposit account at a bank or credit union built for cash that stays put rather than everyday spending. It normally pays interest, and the rate is usually variable, meaning it can change at any time without notice to you. Some accounts limit how many transfers you can make in a month, and some charge a fee if the balance falls below a set amount.

The balance does not rise and fall with markets the way a stock does, and deposits are insured up to $250,000 per depositor, per insured bank or credit union, per ownership category, by the FDIC at banks and the NCUA at credit unions. One risk is inflation. If $1,000 earns 1 percent over a year while prices rise 3 percent, the balance is $1,010 but goods that cost $1,000 cost $1,030.

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How this definition was made

  • Written by an AI model (Claude) following Teloria's editorial standard.
  • Every factual claim was checked by a separate AI fact-check against official US government and regulator sources.

Official sources consulted