The savings account is the only one of the three types that earns interest. The rate is not guaranteed and has varied over the past thirty years. The bank gives you a pass book, which is usually brought up to date each time you make a deposit in person. For your own withdrawals at the bank you use a withdrawal slip. For payments to other persons you may use a cheque.
Cheque writing is discouraged by setting a fee for each cheque written, a fee that is usually higher than that on other forms of accounts. Many banks have the following regulation governing savings accounts: "For each cheque written against a savings account, excluding cash withdrawals by the customer, a charge of 15¢ shall be made after allowing one free cheque every three months for each full $100 of quarterly minimum balance." This type of account is best used for short term saving of relatively small amounts, such as saving for a vacation, a new car or a refrigerator. It earns only a small interest but, most important, it has the convenience of being a separate account within the same institution where the saver probably transacts most of his financial affairs.