**Savings accounts**
A [savings account](https://www.confiduss.com/en/banks/account/savings/) is a deposit account opened at a bank or other financial institution. This type of account is interest bearing, which means that you earn a certain amount of interest by holding your cash funds in it. In comparison with other accounts, this type of account is flexible in terms of number of transactions and amount of funds invested, and has no specific end date. In addition, maintenance fees and transaction costs are much lower than for other types of accounts. Unlike trading or merchant accounts, savings accounts are not meant for active use. They usually hold credit payments that recur over a period of time, at the end of which the total amount saved and the interest payments are debited to a current account.

**Functions of savings accounts**
As the name implies, an individual will open a savings account if he or she has excess funds and wants to save them for the future. This kind of account is used for cash that is not intended to be spent immediately and can serve as a long-term investment. Banks normally use these savings to finance other interest-bearing loans. Therefore, if the account holder wants to withdraw funds immediately, he or she may have to pay a transaction fee, as banks often require some time to refinance.

One of the main reasons why savings accounts may be preferred over other bank services is the fact that they pay interest. This allows you not only to set aside part of your income as private savings, but also to earn an additional monetary return. However, the banking industry has been affected by the extended run of low interest rates, particularly services like savings accounts; this means that if your main objective is to earn interest, it might be more worthwhile to consider a different financial service.

Savings accounts can easily be opened in most banks, but costs differ from one to another. The best way to make use of your savings account is to set up an automatic payment to it each month, or another more convenient interval. It is important to evaluate the appropriate amount of money that you can set aside each month and not take out again by the end of it.