A bank savings account is the basic type of account that you can open in any financial institution either in a contemporary financial institution or in a credit union organization. This type of account gives you a safe place to keep your money and often helps you to earn a compounding interest depending on the type of bank savings account you open and how much you have been able to save in the account. The reason you earn interest from saving in a bank is simply saving in a bank means you are lending the bank money which they also lend to other people and businesses at a required amount as interest to be returned with the money borrowed, hence a percentage of such interest is also given to you as interest. This is to make you know that the higher and longer your money stays in a bank savings account the higher the compounded interest either with a contemporary bank or with the credit union. A lot of banks and credit unions offers different types of savings account, examples are traditional savings account, health savings account, high-interest rate savings account, and some other types. The difference between these types of savings accounts varies in how much interest they get and the purpose that is attached to the money that is saved in them.
A bank savings account works in such a way that every money that is saved in such an account is insured by the Federal Deposit Insurance Corporation (FDIC), which helps to prove the safety of your money, and even if something happens to the financial institution that they money is saved with, you will still be able to get your money back up to a certain limit. And why most banks or credit unions offer interest on their bank savings account is to serve as an incentive that encourages and motivates people to save. The idea of having a particular amount added to your money without having to work for it is a way of helping you want to save and also makes you reach your desired financial goal and you can do what you want to do with the money. This is the path that many have tread to ensure they get their dream house, or car, send their wards to their desired school, and lots more.
Save in a bank savings account, only on the exception or limit you placed by yourself maybe a specific target or the type of savings account or open. Knowing all this should make you want to bring that dream alive by saving today. Open a savings account with the credit union and start saving.