A savings account is an account that lets you store your money safely and earn interest. It’s a basic account offered by banks, credit unions, and other financial institutions that allows money to be deposited and withdrawn when you need it.

A savings account is a deposit account you use to save money rather than spend it right away. Savings accounts are built for saving toward specific goals — for example, you might open one for an emergency fund, or just for general savings.

As an incentive to save, many savings accounts pay interest: money deposited earns interest, which is then added back into the account. Financial institutions use savings and other deposit accounts to fund loans for their customers.

How do you open a savings account?

You can find savings accounts at almost every bank and credit union, including online banks, as well as at brokerage and investment firms. For most institutions you can open an account at a branch or online, and it usually doesn’t take long. Requirements vary, so check first — you’ll typically need your name, address, phone number, photo ID, and Social Security number.

It’s worth comparing accounts for the best rates, requirements, and features. Interest rates vary by account and institution and can change at any time, so check around and watch for promotions.

Some institutions require a minimum deposit to open an account; others let you fund it later.

What does a savings account cost?

Savings accounts are often free, but there are some limitations and potential costs. You’ll typically need to keep a minimum balance — if you fall below it, the bank may charge a monthly or annual fee (some banks lower the minimum for students). Be sure you understand any requirements before opening an account.

Savings accounts are a good idea for many reasons, including the chance to earn interest, and they’re a safe place to store your money. Regular deposits into a savings account can help make sure you have enough to meet your savings goals.