What is the primary purpose of a savings account?

The primary purpose of a savings account is to save money while earning interest. Savings accounts are specifically designed to help individuals set aside funds for future needs or emergencies, providing a safe place to store money while also allowing it to grow over time due to the interest earned. Unlike checking accounts, which are aimed at facilitating frequent transactions and everyday purchases, savings accounts typically have higher interest rates and more limited withdrawal options, encouraging users to save rather than spend.

This interest accumulation sets savings accounts apart, making them an effective tool for building savings over time. They often come with the benefit of being insured by institutions like the FDIC in the U.S. (up to applicable limits), which adds a layer of security for the depositor's funds.

In contrast, options related to borrowing money and monitoring credit scores pertain to different financial products and functions, such as loans and credit reports, which do not align with the primary objectives of a savings account. Similarly, while savings accounts serve as a monetary reserve, they are not meant for routine transactions like checking accounts. Therefore, option B accurately captures the essential function of a savings account.