Step-by-step explanation:
A savings account that does not earn interest and has a low minimum balance requirement may be a good option for people who are just starting to save money or for those who need to maintain a small balance. These accounts are typically offered by traditional banks and credit unions, and they are often designed to be accessible and affordable for people who are not able to maintain a higher balance or who do not need to earn interest on their savings.
While these accounts may not offer the same interest rates or other benefits as higher-tier savings accounts, they can still be a useful tool for building savings and managing money. By choosing an account with a low minimum balance requirement, individuals can avoid the fees and other charges that may be associated with maintaining a higher balance, and they can begin building a savings habit without having to commit a large amount of money upfront.
In summary, a savings account that does not earn interest and has a low minimum balance requirement can be a good option for people who need to maintain a small balance or who are just starting to save. While they may not offer the same benefits as higher-tier savings accounts, they can still be a useful tool for building savings and managing money, particularly for individuals who may be on a tight budget or who are not able to maintain a higher balance.