SAVINGS BANK Meaning and
Definition
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A savings bank is a financial institution that focuses primarily on providing deposit services to individuals, families, and small businesses. The main purpose of a savings bank is to encourage people to save money and to assist them in growing their savings over time. While savings banks are similar to commercial banks in terms of offering basic banking activities like deposits, withdrawals, and transfers, they differ in their main objective. Savings banks prioritize the promotion of savings culture and financial inclusion.
Typically, savings banks offer a range of savings products such as savings accounts, deposit certificates, and fixed deposit accounts. These accounts usually offer competitive interest rates to encourage customers to save more. Savings banks differ from other financial institutions as they often have restrictions on the types of lending they can engage in. Instead of providing loans for commercial activities like most commercial banks do, savings banks focus on safe, low-risk investments. The reason for this specialization is to ensure that customers' deposits are secure and less prone to substantial risk.
Moreover, savings banks often take an active role in educating their customers about the importance of saving and proper financial management. They strive to assist individuals and families in setting financial goals, budgeting, and making informed decisions about their money. Savings banks also work closely with various consumer protection agencies to safeguard depositor interests. In many countries, savings banks are subject to specific regulations and legal requirements that are designed to protect depositors and ensure the stability of the financial system.
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An institution in which small savings, up to a certain amount, are kept at interest; to save appearances, to preserve a decent outside; to do something to avoid exposure or embarrassment.
Etymological and pronouncing dictionary of the English language. By Stormonth, James, Phelp, P. H. Published 1874.
Common Misspellings for SAVINGS BANK
- aavings bank
- zavings bank
- xavings bank
- davings bank
- eavings bank
- wavings bank
- szvings bank
- ssvings bank
- swvings bank
- sqvings bank
- sacings bank
- sabings bank
- sagings bank
- safings bank
- savungs bank
- savjngs bank
- savkngs bank
- savongs bank
- sav9ngs bank
Etymology of SAVINGS BANK
The word "savings bank" has a relatively straightforward etymology. Here is a breakdown of its components:
1. Savings: The word "savings" originates from the verb "to save", which can be traced back to the Old French word "sauver" and the Latin word "salvare", both meaning "to rescue" or "to keep safe". Over time, the word "save" also gained the additional meaning of "to keep aside or accumulate money".
2. Bank: The term "bank" comes from the Italian word "banca", which was derived from the Germanic word "bank" or "bench". Originally, a "banca" referred to a bench or a counter where moneylenders conducted their business. Eventually, the term "bank" came to represent the financial institution that offered various services, including the safekeeping and management of money.
Similar spelling words for SAVINGS BANK
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