What is a savings account primarily used for?

A savings account is primarily designed for depositing money while also allowing the account holder to earn interest on their balance. This makes it an excellent tool for keeping funds accessible yet separate from everyday spending. The interest earned can help the savings grow over time, providing a safer option for accumulating funds compared to keeping cash on hand.

In contrast, using a savings account for large purchases is not its main function; it focuses instead on steady accumulation and liquidity. Holding cash without interest does not make sense within the context of a savings account since one of its primary purposes is to earn interest. Investing in stocks would typically involve more risk and volatility, which is outside the conservative and stable framework that savings accounts provide.