Meaning & use
savings account
Last updated
Meaning
nouncountablefinance
A bank account where you keep money you do not plan to spend soon, and which usually earns interest.
Grammar: Takes an or the: open a savings account.
Patterns
- a savings account at somewhere
- put something in a savings account
She opened a savings account for her college fund.
He moves $100 into his savings account every payday.
The interest on my savings account is quite low this year.
Word forms
| plural | savings accounts |
|---|
Common combinations
- open a savings account
- Parents often open a savings account for a newborn child.
- high-interest savings account
- A high-interest savings account pays more than a basic one.
- pay into a savings account
- I pay a little into my savings account each month.
- withdraw from a savings account
- You can withdraw from a savings account, but limits may apply.
- savings account balance
- My savings account balance has grown slowly.
Synonyms and how they differ
- deposit account
- Deposit account is a British term for a similar account, and may suggest a set term or notice for withdrawals.
- nest egg
- A nest egg is the money itself saved for the future, not the bank account that holds it.
- money market account
- A money market account is a special kind of savings account, often with higher interest and minimum balance rules.
Opposites
Word family
Commonly confused: savings account or checking account?
savings account vs checking account
A checking account, called a current account in British English, is for everyday spending and usually pays little or no interest.
Practice
Which kind of account would you choose to keep money safe and earn interest for a future purchase?
Choose one answer.
A savings account is designed for money you keep and earn interest on. A checking account is for daily spending, and a credit card or mortgage means borrowing.
Make it your own
Write a sentence using “savings account”, then check it and compare it with the examples above.