Savings accounts

Savings accounts, or passbook accounts, are found at any bank, credit
union, or savings and loan institution. Because they are extremely liquid, they are characterized as having extremely low interest rates. Passbook accounts also tend not to have check-writing privileges. Most
banks also offer interest-bearing checking accounts. However, the
interest on these accounts tends to be less than that on savings accounts
and there may be quite high minimum balances required in order to
qualify to receive interest. Any interest received on either a savings
account or a checking account is taxed as ordinary income.