Savings Account

Definition

• An account maintained by a financial institution that pays interest but cannot be used directly for purchases. Unlike chequing accounts, savings accounts provide interest. The interest rates offered by banks for savings accounts are comparably lower than what an individual can expect to earn from other sources, but they are considered a safe place to store money. Also known as an "interest savings account"

Synonyms
Interest Savings Account

Related Terms and Acronyms

• Call Deposit Account — Definition,
  • A bank account that combines some features from both savings and checking accounts.
• Chequing Account — Definition,
  • A bank account that allows quick access to the money in the account.
• Clearing and Settlement (C&S) — Acronym,
  • The process whereby banks collect or pay out for items drawn on or paid into accounts in their institution. This process enables banks to accept each other's cheques and bank drafts for deposit. The Canadian Payments Association operates Canada's clearing system.
• Closed-account Fee — Definition,
  • A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed.
• Combination Account — Definition,
  • An account that is part savings and part chequing. You may write cheques and you will be paid interest if you have enough money in the account.
• Express Account — Definition,
  • A low-fee or no-free chequing account, limited to ATM, telephone, and online transactions. Express account customers are charged fees when using bank teller services.
• Joint Account (J/A) — Acronym, Important,
  • A bank account owned by two or more persons who share equally in the rights and liabilities of the account.
• Online Banking (OLB) — Acronym, Important,
  • Access by personal computer or terminal to bank information, accounts and certain transactions via the financial institution's web site on the Internet. Also known as Internet banking.
• Overdraft Minimum Amount — Definition,
  • Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.
• Personal Savings — Definition,
  • The difference between personal disposable income and personal consumption spending.
  • Put own money away.
• Rests — Definition,
  • The periodical balancing of an account for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.
• Retail Banking — Definition,
  • Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.
• Tax-Free Savings Account (TFSA) — Acronym, Canada, Important,
  • A savings account for Canadians where income earned is not taxed.
• Time Deposit — Definition,
  • A type of deposit account with a stated maturity at which time the account reverts to another type of account or is "rolled over" for another fixed period of time.