Accessibility Menu

What Is a Savings Account?

By Matthew DiLalloUpdated Dec 12, 2024 at 11:50 AM

Key Points

  • Savings accounts provide a risk-free option to earn interest, insured up to $250,000 by FDIC.
  • Interest rates on savings accounts depend on the federal funds rate and may differ by bank.
  • You can use multiple savings accounts for different goals, making money management easier.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.