People can deposit money in bank, savings-and-loan, or credit-union accounts {savings account}|, with promise by bank to pay person all money back on demand. Bank is debtor. Depositor is creditor. Bank has legal title to the money.
insurance
Federal Deposit Insurance Corporation insures bank savings accounts, up to $250,000. Federal Savings and Loan Insurance Corporation insures savings-and-loan-company savings accounts, up to $250,000.
interest
Interest is typically 2% to 5%. Interest rate can depend on how long the money must remain with bank before withdrawal and how much is in account. Savings and loans typically pay 0.5% more than regular banks. Credit unions typically pay 0.5% more than savings and loans.
deposit
Savings accounts can require minimum deposits.
income
A reasonable saving rate is 5% of income.
Practical Affairs>Financial Affairs>Banking
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Date Modified: 2022.0224