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Everyone needs to save for the future and sometimes a savings account is the best way to go. But, do savings accounts count as assets? 

I’ll take you through what a savings account really is, how it fits into your overall financial plan, and how it compares to other types of investments.

By the end, you’ll have a better understanding of whether or not a savings account can be considered an asset. Read on to learn more!

a man holding his passbook and thinking his savings account an asset

Is a savings account an asset?

Money in a savings account is considered an asset, and can be included when calculating net worth. Assets are anything of monetary value that you own, which means any cash you have – wherever it is stored – is an asset

By keeping money in a savings account, you can increase the value of your assets and improve your financial standing.

Furthermore, a savings account is an asset that usually appreciates over time. This means that, with a savings account, you can earn interest on your money. 

The amount of interest will depend on the type of account and how much you have saved, but it can be an effective way to grow your assets over time.

Why would I keep money in a savings account?

There are many reasons why you may choose to use a savings account to store your cash.

Firstly, a savings account is generally much safer than other types of investments and you can easily access your funds when needed. 

Secondly, you don’t have to worry about the volatility of the stock market if you choose to put your money into a savings account. 

Lastly, it’s relatively easy to open up a savings account with most banks, so you don’t have to worry about complicated paperwork or lengthy application processes.

However, it’s important to note that a savings account is not the same as other types of investments such as stocks and bonds. Savings accounts are not considered investments in the traditional sense because they do not typically yield large returns. They also do not offer much protection against inflation, so it’s important to consider other investments as part of your overall financial plan.

Related: The Personal Financial Plan Example You Can Use To Reach Your Financial Goals

Is a savings account a liquid asset?

Yes, a savings account is a liquid asset since you can access your money relatively quickly and easily. Liquid assets are assets that can be converted into cash quickly and securely with minimal effort or fees for you to pay.

Savings accounts are the perfect example of liquid assets, since you can withdraw your money whenever you need it, and there is usually no minimum amount required to do so.

However, you should also note that some banks may impose a limit on how much money you can withdraw from your savings account each month or have other restrictions in place. This is why it’s important to read through the terms and conditions of your account before you open it.

It’s also important to remember that liquid assets are not necessarily the same as liquid investments. Liquid investments refer to investments such as stocks, bonds, and mutual funds that can be sold quickly and easily without incurring a large penalty or fee.

They differ from liquid assets in that there is no guarantee of the value of the investment, it could either increase or decrease over time.

Is a savings account an investment?

No, a savings account is not considered an investment in the traditional sense. An investment usually refers to an asset that has the potential to generate income or increase in value over time. A savings account does not do this, given its main purpose is to store money for future use.

However, interest rates earned on a savings account can be considered a form of income. Therefore, if you are looking to increase your wealth then saving money in a savings account can be part of an effective investment strategy.

It’s important to remember that although savings accounts are not investments, they do have some advantages over other types of investments such as stocks and bonds. 

someone holding a passbook and knows that savings account an asset

Savings accounts are much safer than other investments since you don’t have to worry about the volatility of the stock market and your money is always accessible when you need it.

For this reason, it’s important to consider including a savings account as part of your overall financial plan. It can help ensure that you have enough money available for future needs while giving you the benefit of earning a small amount of interest on your balance.

What are the 3 types of assets?

The main 3 types of assets include liquid assets, fixed assets, and financial assets. These three different types of assets are typically classified based on their liquidity, or how quickly and easily they can be converted into cash.

1. Liquid assets

Liquid assets such as a savings account are the most liquid type of asset since you can access your money when needed with minimal effort or fees. 

They’re ideal for emergency funds or any other type of cash that you may need quickly and easily. For this reason, it’s always a good idea to at least have some idea of your liquid net worth so you know how much is on hand if you need it.

2. Fixed assets

Fixed assets refer to physical property or items that have a fixed lifespan such as real estate, vehicles, and machinery. They usually take some time to sell or liquidate and are not suitable for short-term financial needs.

3. Financial assets

Financial assets are investments such as stocks, bonds, and mutual funds that have the potential to increase in value over time. 

They are usually riskier than liquid assets but can provide higher returns if managed correctly.

a woman holding a tablet and debit card check savings on online banking app and think that savings account an asset

4. Other types of assets

In addition to the three main types of assets, there are also other types of assets such as intellectual property, natural resources, and collectibles. 

These assets usually have a much longer lifespan and require more specialized knowledge to effectively manage them.

What type of asset is a savings account?

A savings account is generally considered to be a liquid asset since customers are authorized to freely withdraw money from the account at any time. The main purpose of a savings account is to store and securely protect money while allowing customers to easily access their funds when needed.

Savings accounts can also be seen as a form of investment since they offer interest rates that can generate income over time. 

However, it’s important to remember that interest rates can and will change over time, so it’s important to keep track of the current interest rate if you’re looking for a return on your investment.

Does money in the bank count as an asset?

Yes, any money that is stored in a bank, whether it’s in a savings account or checking account, is considered an asset. Depending on the type of account you have, money held in the bank can be classified as either a liquid asset or a financial asset.

Money in banks is also generally considered to be one of the safest types of assets since deposits are protected by the FDIC and most banks are stable financial institutions.

someone holding a passbook checking if savings account an asset

Learning how to manage your money in a bank account provides you with a foundation that you can later use to invest in other asset categories. You may even use the same companies or institutions to manage your investments as you do for your bank accounts.

This provides you with the peace of mind of knowing that your investments are being managed by a trusted, reliable institution.

Is a checking account an asset or liability?

Since a checking account safely houses your money in a financial institution, it is generally an asset. However, if you have a checking account with an overdraft or credit line attached, the account may be seen as both an asset and a liability depending on the circumstances.

If your account has a negative balance due to unpaid fees or other charges, then your checking account would classify as a liability. However, if your account is in good standing and the balance is positive, then your checking account is an asset.

Many checking accounts now offer interest rates, much like a savings account. This can provide you with a return on your investment if the balance is maintained and not regularly withdrawn from. 

It’s not usually as much as a traditional investment, but it can still provide you with a small amount of additional income over time.

Related: What is a Certified Check – and How Do I Get One?

Which account is not an asset?

All accounts that you hold with a positive balance are considered assets that contribute to your net worth. The only exception is an “accounts payable” account which is used to track money that you owe to other parties. 

This type of account usually has a negative balance that will be paid by one of your other accounts.

What are examples of assets?

Here’s a list of some of the most common assets:

1. Cash or savings accounts

When you store your money in a bank, it counts as an asset. This is especially true if the balance on your account is able to earn interest, that can help generate more money over time, even if it’s only a little bit given that these accounts generally have lower rates of return than other assets.

2. Investments

Stocks, mutual funds, bonds, and other types of investments are all assets that have the potential to earn you income or appreciate in value. 

They are usually considered to be more volatile than other types of assets but can offer a good return if managed properly.

3. Real estate

Real estate is an asset that can grow in value over time and generate income for its owners through rental payments or capital gains especially if your mortgage is already paid off.

This type of asset generates passive income, but it does require maintenance and upkeep to retain its value.

someone checking on the passbook and think savings account an asset

4. Retirement funds

Retirement accounts such as 401Ks and IRAs are assets that you can use to save for the future – especially when you’re at the point where you don’t want to work anymore.

The money that you put into these accounts will grow over time with compound interest and can be withdrawn when it’s time for you to retire.

This is a popular option for those who have 401k matches or other employer contributions to their retirement fund.

6. Jewelry and collectibles

Jewelry and collectibles can also be classified as assets if they are valued at more than their original purchase price. 

This type of asset is usually more speculative in nature and can go up or down in value depending on the market, so it should be monitored carefully to ensure that its worth doesn’t decrease.

7. Intellectual property

Intellectual property is an asset that can include patents, copyrights, and trademarks. 

These assets are valuable in that they offer exclusive rights to the creator or owner of the property. Their value can also appreciate over time if they are managed correctly.

8. Businesses

Businesses are a type of asset that can generate income for its owners. This can include small businesses, franchises, and corporations. 

In addition to providing cash assets through profit, a business can be sold to generate capital.


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About the author

Anna is the founder of LogicalDollar and a personal finance expert, having been featured in Forbes, HuffPost, Reader’s Digest, Bankrate, MSN Money, Yahoo! Finance, CreditCards.com and many more. With more than 10 years of experience in the financial and legal industries, bachelor’s and master’s degrees in these fields, as well as her own journey in turning $60,000 in debt into a thriving investment portfolio, she’s committed to helping others get on the path to financial freedom. Find out more.