Banks and credit unions offer savings accounts to store money and earn interest.
Despite having many options, savers prefer a savings account, according to U.S. News. Nearly half of respondents save, double any other option.
If you know how a piggy bank works, then you get the gist of a savings account.
CFPB says no. If you have $250,000 or less in deposits at the same insured bank or credit union, your deposits are federally insured.
Regulation D limits transfers and withdrawals from your savings account to six per month.
Most bank and credit union savings accounts are government-insured. FDIC and NCUA insure all deposits, not just savings accounts, up to $250,000 per institution.
A high-yield savings account offers much higher interest rates on your money than a traditional savings account – maybe 10 times more
Banks use your money to finance loans to consumers. For this reason, competition between banks to land new savings accounts has become fierce.