What is typically a characteristic of a savings account?

A characteristic of a savings account is that it typically has limited monthly withdrawals. This is designed to encourage saving rather than spending, which aligns with the primary purpose of a savings account. By restricting the number of withdrawals, banks aim to promote a habit of saving money.

In most cases, financial institutions allow account holders a set number of transactions per month, after which additional fees may be imposed. This limitation not only helps individuals manage their savings more effectively but also ensures that the bank can maintain lower operating costs associated with saving accounts compared to checking accounts that are meant for frequent transactions.

The nature of a savings account, therefore, emphasizes the balance between easy access to funds and encouraging account holders to keep their money saved, benefiting from interest earned over time.