Savings account
In one sentenceA bank account for saving money, with more restrictions on withdrawals than a current account. It may earn a return depending on the account type and the bank's terms.
Simply put
A savings account suits money the business or person does not need for day-to-day movement, and some banks offer a return on it in Sharia-compliant forms.
It may have a limit on the number of withdrawals or not accept checks, so it is not suitable for daily transactions.
Worked example
A workshop owner puts 100,000 SAR in a savings account for a year, assuming an annual return of 3% for illustration only.
Amount saved100,000 SAR
Assumed return3% a year
Return for one year100,000 × 3% = 3,000 SAR
Expected return during the year3,000 SAR
Formula: Return = amount × annual rate × deposit period in years
Don't confuse it with
Time depositA time deposit is locked for a set period and cannot be withdrawn before it without an effect on the return, while savings are more flexible.