You open a savings account at the bank. The bank pays you interest on the money that you deposit and leave in that account. The bank then loans that money out to other people, only they charge a slightly higher interest rate on the loan than what they pay you for your account.

Regular Savings Accounts,Money Market Accounts,Certificates of Deposit (CDs) are a different types of Savings Accounts.

A savings account is one of the simplest types of bank accounts. It allows you to store cash securely and earn interest on your money.