What is a Savings Account?

A savings account is an account designed to help you save money and earn interest over time.

Unlike a chequing account, which you use for everyday spending, a savings account is meant for money you don’t plan to use right away—like an emergency fund, travel, or a future down payment.

You can move money in and out, but the main goal is to park your cash safely and let it grow.

KOHO High Interest Savings

If you’re going to use a savings account, it helps if it actually pays you a solid rate on your balance.

With KOHO High Interest Savings, you can:

• Earn a high interest rate on the money you’ve set aside

• Keep your cash flexible and accessible through the app

• Use it as your hub for emergency savings or short-term goals

How a Savings Account Works

The basics are simple:

• You deposit money into the account

• The bank or fintech pays you interest on your balance

• Interest is usually calculated daily and paid monthly (this can vary)

• Over time, your money grows without you having to do much

Savings accounts are generally considered low risk and are often covered by deposit insurance up to certain limits if they’re held at a member financial institution.

Savings Account vs. Chequing Account

Both are useful, but they do different jobs:

• Chequing account: Best for day-to-day spending (debit purchases, bills, transfers)

• Savings account: Best for storing and growing money you don’t want to spend right away

Many people keep a chequing account for their regular transactions and a savings account (or a few) for specific goals.

What Do People Use Savings Accounts For?

Common uses for a savings account include:

• Emergency fund

• Short-term goals like travel, a new laptop, or car repairs

• Larger goals like a home down payment or education costs