Identification

• An interest-bearing savings account is a type of deposit account that allows you to make regular deposits and withdrawals. In exchange for keeping your money on deposit with the bank, you are given interest or money from the bank based upon a percentage of the balance you keep in the account.
  
  

Time Frame

• Unlike time deposit accounts, interest-bearing savings have no set maturity date. This means that you have the ability to access your money whenever you choose and are also able to close the account when you wish.
  
  

Cost

• Some banks charge a monthly fee for having a savings account, and others require you to keep a certain minimum balance in the account to avoid a monthly service charge.
  
  

Rates of Interest

• Interest-bearing savings accounts typically pay higher interest than checking accounts but lower rates than time deposit accounts like certificates of deposit. Some savings accounts have tiered interest rates, which pay you a higher percentage if you have over a certain amount of money in the account.
  
  

Restrictions

• Because of a federal law known as Regulation D, U.S. financial institutions are required to limit you to six non in-person withdrawals that you make per month, such as transferring money by phone or online. Three of the six non in-person withdrawals can be made to a third party through an electronic debit.
  
  

Protection

• Provided the institution is FDIC insured, the money kept in an interest-bearing savings is protected up to a certain dollar amount by the Federal Deposit Insurance Company in case of a bank failure.