Core Insights - Savings accounts are common financial tools that allow individuals to store money securely while earning interest, represented as the annual percentage yield (APY) [2] - Interest earned in savings accounts is considered taxable income, and banks issue a Form 1099-INT for interest earnings of $10 or more [3] - The amount of interest earned on a savings account depends on the interest rate, compounding frequency, and additional contributions [4][5] - Experts recommend keeping three to six months' worth of essential expenses in savings, but the amount can vary based on individual financial situations [6][7] - Savings accounts allow for withdrawals, but banks may impose limits and fees on excessive transactions [8] - The best savings account varies by individual needs, with online banks and credit unions often providing competitive options [9][10] - Multiple savings accounts can help track different savings goals and maximize interest earnings, but they also require more management [11][12] - The 50/20/30 rule is a budgeting strategy that allocates 50% of after-tax income to needs, 30% to wants, and 20% to savings [13] - Savings accounts have routing numbers that identify the bank, and they are typically FDIC-insured up to $250,000 per depositor [15][16]