Savings accounts in one form or another have been around since antiquity. The Monte dei Paschi di Siena, located in Italy, is the oldest bank that is still in existence, having been operating since 1472! Banking as we know it can be traced to Italy during the late medieval and early Renaissance times. However, concepts such as storage of commodities and letters of credit can be traced back as far as the third century CE.

Banks administer checking and savings accounts for individuals, pay cheques drawn on the bank, and collect money and cheques deposited to current accounts. They also lend money to qualifying customers for purchases such as cars and homes.

While many Brits flocked to safe savings accounts after the 2007 collapse of Northern Rock and the 2008 collapse of Bradford & Bingley, they have been steadily withdrawing money from savings in the years since. Experts suggest that money taken out of savings is being used to pay off mortgages and other debts now that interest rates on savings are very low.

But savings accounts are poised to remain popular for the indefinite future, both as a hedge against inflation and as a safe haven for funds, particularly as individual investors are more sceptical about higher risk investments due to the worldwide economic slump that began in 2008.