SAVE BANK Meaning and
Definition
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A savings bank, often referred to as a save bank, is a type of financial institution that provides individuals with a safe and secure place to save their money. It is designed to encourage the habit of saving and serves as a means for individuals to accumulate funds for future financial needs or emergencies.
The primary function of a save bank is to accept deposits from individuals and pay them interest on their savings. These deposits can be made on both a small and large scale, allowing individuals from all walks of life to access the services provided by the bank. Save banks typically offer competitive interest rates on deposits, which help individuals to grow their savings over time.
Unlike commercial banks, save banks may not offer a wide range of banking services such as lending or credit facilities. Their main objective is to protect and grow the savings of their customers. Therefore, save banks generally focus on providing secure savings options rather than complex financial products. They aim to foster a culture of saving by making it convenient and accessible for individuals to deposit their surplus funds and earn interest on those savings.
Save banks also play a vital role in financial inclusion, as they offer financial services to those who may not have access to other forms of banking. They provide a safe haven for individuals to accumulate savings, ensuring that their hard-earned money is protected and can be accessed when needed.
Etymology of SAVE BANK
The term "save bank" is a combination of the words "save" and "bank".
The word "save" originated from Middle English, coming from the Old French word "sauve", which meant "safe, secure". It ultimately traces back to the Latin word "salvus", meaning "safe, sound".
The word "bank" has a long history, originating from the Old Italian word "banca", which referred to a bench or counter used by money lenders. The word eventually spread to other languages, including Middle English as "banke", referring to a mound or raised area where money was exchanged.
When the two words are combined to form "save bank", it essentially means a secure place or institution for storing and managing money, emphasizing the concept of safety and protection for people's savings.
