What is a savings account? And other common questions, answered

A savings account might be the perfect option if you’re looking for a good place to stash your cash. For starters, your money is safe: Accounts held at FDIC-member banks and NCUA-member credit unions are insured up to $250,000 (per depositor, per account type). A savings account also makes it harder to access your cash (no ATM cards, debit cards, or checks to tempt you), helping you avoid impulse spending. However, perhaps the biggest perk (especially right now) is that savings accounts pay interest, so you can put your money to work and save even more — whether you’re building an emergency fund or saving for a dream vacation.