In personal finance, a bank account that pays interest and usually limits withdrawals is called a savings account.
Savings accounts are designed for holding money rather than making frequent payments. Banks and credit unions may pay interest on deposited funds, with rates and compounding practices varying by institution and account type. Some accounts allow transfers or withdrawals but may impose limits or fees under their terms.
A checking account is generally intended for regular spending and payments, while a certificate of deposit usually locks funds for a specified term in exchange for a stated rate. A savings account normally offers easier access than a certificate of deposit, though it may offer a lower rate.
In the United States, eligible deposits at an FDIC-insured bank are generally insured within applicable limits. Insurance coverage does not guarantee a particular interest rate or protect against every investment loss.