How do savings accounts work?
These are the basic steps of a savings account.
-You open a savings account at the bank.
-You deposit the money you want to save into that account.
-The bank pays you interest on the money that you deposit and leave in that account.
-The bank then loans the money you deposit out to other people, only they charge a slightly higher interest rate on the loan than what they pay you for your account.
-You open a savings account at the bank.
-You deposit the money you want to save into that account.
-The bank pays you interest on the money that you deposit and leave in that account.
-The bank then loans the money you deposit out to other people, only they charge a slightly higher interest rate on the loan than what they pay you for your account.