Which of the following best describes a savings account?

A savings account is best described as a bank account that earns interest on deposits and is used for short-term savings. This type of account is designed primarily for individuals to set aside money while earning a small amount of interest over time. The interest accrued can help the account holder grow their savings, making it an effective tool for achieving financial goals in the near future.

In contrast to other options, everyday transaction accounts typically emphasize frequent access and low or no interest rates, which distinguishes them from savings accounts focused on interest accumulation. Investment accounts are intended for buying stocks and other securities and have a different risk and return profile. Lastly, a savings tool that offers no interest would not typically qualify as a savings account, since earning interest is one of the primary features that benefits account holders in their financial planning. Thus, the characteristic of providing interest makes option B the most accurate descriptor of a savings account.