Ninety-Day Savings Account

DEFINITION of 'Ninety-Day Savings Account'

A type of passbook savings account that guarantees a fixed rate of interest for 90 days - from date of deposit to date of withdrawal. Upon maturity, account holders can either close the account and withdraw their funds or roll the accrued balance over into another 90-day savings account or another type of account. Some banks use the 90-day Treasury bill interest rate to determine the amount of interest offered on 90-day savings accounts.

BREAKING DOWN 'Ninety-Day Savings Account'

Ninety-day savings accounts can be a competitive alternative to short-term certificates of deposit (CDs) or T-bills because they have a low risk of default and short maturity.

Passbook savings accounts got their names because account holders were given a small book in which the bank staff would record all deposits, withdrawals and interest accrued. Passbooks have, for the most part, disappeared given that most people now receive monthly statements by mail or email.

RELATED TERMS
  1. Time Deposit

    A savings account or certificate of deposit (CD) held for a fixed-term, ...
  2. Money Market Account

    An interest-bearing account that typically pays a higher interest ...
  3. Savings Account

    A deposit account held at a bank or other financial institution ...
  4. Call Deposit Account

    A bank account for investment funds that offers the advantages ...
  5. Passbook Loan

    A personal loan extended to a savings-account holder by the custodial ...
  6. Linked Savings Account

    Any type of bank savings account that is linked by account number ...
Related Articles
  1. Savings

    4 Savings Accounts for Investors

    Curious about the best saving accounts and which ones suit investors?
  2. Savings

    The 5 Best Alternatives to Bank Saving Accounts

    Find out about some of the most profitable available alternatives to depositing money in a traditional bank passbook savings account.
  3. Savings

    Understanding Savings Accounts

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

    Banking: Savings Accounts 101

    By Amy FontinelleAfter checking accounts, the next biggest thing most people think about when they think about banking is savings accounts. Having a savings account somewhere to store extra cash ...
  5. Savings

    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?
  6. Options & Futures

    Demystification Of Bank Accounts

    Find out which type of account suits your specific needs.
  7. Savings

    What is a Demand Deposit?

    A demand deposit is any type of account where the money in the account may be withdrawn at any time without prior notice to the financial institution.
  8. Budgeting

    Protect Your Savings From Their Greatest Threat - You

    Watch your savings magically grow as you make withdrawals a headache and deposits a breeze.
  9. Savings

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  10. Savings

    Where To Put Your Cash: Call Deposit Vs Time Deposit Accounts

    Time deposit accounts and call deposit accounts allow customers to earn higher interest in exchange for less access to their cash.
RELATED FAQS
  1. For what types of accounts are demand deposits available?

    Learn about the different types of accounts designated as demand deposit accounts, such as savings accounts and money market ... Read Answer >>
  2. Why would you keep funds in a money market account and not a savings account?

    Read about the differences between money market accounts and savings accounts, and see why a depositor would elect a money ... Read Answer >>
  3. 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 >>
  4. 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 >>
  5. What are the requirements for opening a savings account in the United States?

    Understand what information and documentation is necessary to open a savings account within the United States, and learn ... Read Answer >>
  6. 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 >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center