DEFINITION of 'Linked Savings Account'

Any type of bank savings account that is linked by account number to a NOW or checking account. These are offered for the convenience of the customer, who can keep the majority of the funds in the savings account and move money over into the demand account as needed. This can also qualify the customer for reduced service charges or free checking.

BREAKING DOWN 'Linked Savings Account'

Linked accounts are sometimes called packaged accounts. The balances on both this account and the checking or NOW accounts are generally reported on a single consolidated statement. This arrangement also often allows the customer to receive a higher rate of interest in the savings account on the bulk of the money.

RELATED TERMS
  1. Savings Account

    A deposit account held at a bank or other financial institution ...
  2. Linked Transfer Account

    Accounts held by an individual at a financial institution that ...
  3. Automatic Transfer Service - ATS

    A banking service offered to customers that has both a general ...
  4. Account History

    All activity within an account, usually since inception. In a ...
  5. Super NOW Account

    An account created in 1982 that offers a higher interest rate ...
  6. Retirement Money Market Account

    A money market account that an individual holds within a retirement ...
Related Articles
  1. Personal Finance

    Understanding Savings Accounts

    A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.
  2. Personal Finance

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  3. Managing Wealth

    Top Premium Checking Accounts of 2015

    Which banks offer the best deals for premium checking accounts – and what do you have to do to qualify for one?
  4. Personal Finance

    Find the Best Savings Account Rates

    You know how to spot the highest interest rate, but how do you really get the best deal on savings accounts?
  5. Investing

    Money Market Accounts with the Highest Interest Rates

    Money market savings accounts can offer higher interest rates than regular or even high-yield bank savings accounts – and perks like these.
  6. Investing

    Money Market Accounts vs. Savings Accounts

    An interest-bearing account that pays a higher interest rate than a savings account and gives the account holder limited check-writing ability.
  7. Investing

    Should You Open A Foreign Savings Account?

    Would opening a savings account in a foreign bank make sense for you? The pros and cons, how to establish one – and alternatives to consider.
  8. Investing

    What Is A Trading Account?

    A trading account enables an investor to buy and sell securities.
  9. Personal Finance

    These Savings Accounts Have the Highest Interest Rates

    Don't expect interest from a bank savings account to make you rich. You can do better, however, than the paltry 0.08% average paid in 2015.
  10. Investing

    The Best Investment Accounts for Young Investors

    What are the best investment accounts for young investors? A few types to consider.
RELATED FAQS
  1. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
  2. How is a savings account taxed?

    Read about the taxation of interest income on personal savings accounts, how the tax is calculated, and how to report savings ... Read Answer >>
  3. How do you calculate payback period using Excel?

    Understand the various fees that can be assessed on a personal or business checking account, and learn methods to avoid being ... Read Answer >>
  4. How safe are money market accounts?

    Learn the difference between a money market account and a money market fund. Both savings vehicles are relatively safe, but ... Read Answer >>
  5. What determines the interest rate in my money market account?

    Placing funds in a money market account may provide a higher interest rate than a savings account due to the underlying securities ... Read Answer >>
  6. What are the risks involved in keeping my money in a money market account?

    Setting aside funds in a money market account can be a safe investment strategy, but investors should be aware of the risks ... Read Answer >>
Trading Center