A savings account

On page 131 of your book, Santoor, you learn about a bank account. A bank account is a safe place to keep your money, just as you keep coins safe in a gullak, a piggy bank made of clay.

One kind of bank account is called a Savings Account. As its name tells, it is meant for saving money. You can put money into it, and you can also take money out of it whenever you need it.

The bank also gives you a reward for saving, called interest. Your book gives an example. Suppose you get ₹50 for your birthday and you put it in your Savings Account. After a year, the bank adds ₹5 more. That ₹5 is the interest. Now there is ₹55 in your account: ₹50 + ₹5 = ₹55.

So a Savings Account has three good things: it keeps your money safe for saving, you can add or take out money at any time, and you earn interest as a reward for saving.