What type of account is used for short- or long-term savings goals or emergencies?

A savings account is specifically designed to help individuals save money for short- or long-term goals, as well as for emergencies. These accounts typically offer interest on the funds deposited, allowing your money to grow over time while still being easily accessible when needed. They usually have lower minimum balance requirements compared to other types of savings options and allow for a limited number of withdrawals per month, making them suitable for both general savings and unexpected financial needs.

In contrast, checking accounts are primarily intended for day-to-day transactions and bill payments, with features like checks and debit cards, but they often have lower interest rates compared to savings accounts. Money market accounts may offer higher interest rates and allow for some checking features, but they often require a higher minimum balance, making them less accessible for everyone. Certificates of deposit are designed for long-term savings and require funds to be locked in for a fixed term, which means they are not ideal for emergencies or short-term needs since early withdrawals often incur penalties.