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A savings account is an account at a savings bank, commercial bank, or a savings and loan (S&L) that pays interest on deposits, usually from the day of deposits to the day of withdrawals. Savings account held at financial institutions insured by Federal Deposit Insurance Corporation (FDIC) or the Savings Association Insurance Fund (SAIF) are insured up to $100,000. Unlike money market accounts, savings account usually have lower or no minimum monthly balance and often have less restrictions in exchange for a lower interest rate. Savings account are generally designed for those beginning a savings program or those who want to build funds gradually for a major purchase.
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