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. Chart Of Accounts

    A listing of each account a company owns, along with the account ...
  4. Account Aggregation

    A process by which accounts are linked for the purpose of combining ...
  5. Checking Account

    A checking account is a deposit account at a financial institution ...
  6. Automatic Transfer Service - ATS

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

    4 Savings Accounts for Investors

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

    Handling High-Yield Savings Accounts

    Is this the savings route for you? Read on to find out what these accounts have to offer.
  5. 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?
  6. Personal Finance

    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.
  7. Small Business

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
  8. Personal Finance

    What is an Account Balance?

    An account balance represents the total amount of money in a financial account at any given moment.
  9. 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.
  10. 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.
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. 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 >>
  3. 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 >>
Trading Center