This is a product of the bank that attracts interest. With this product, the customer is given a savings passbook where all transactions of the customer are recorded. The customer is also given a savings withdrawal form for withdrawals. The third party cannot withdraw on behalf of the customer unless a special arrangement is made with the Bank. This account attracts interest payable monthly and applied quarterly.
This account are mainly maintained by retail financial institutions that pay interest but cannot be used directly as money in the narrow sense of a medium of exchange (Eg. By writing a cheque). This account let customers set aside a portion of their liquid assets while earning a monetary return. For the bank, money in a savings account may not be callable immediately and in some jurisdictions, does not incur a reserve requirement, freeing up cash from the bank’s vault to be lent out with interest.