How does a savings account generally function?

A savings account generally functions by earning interest on deposited funds, which is why the right choice is highlighted. When you deposit money into a savings account, the bank pays you interest as a reward for allowing them to use your funds. This interest is typically calculated on a monthly basis and credited to your account, contributing to the growth of your savings over time.

The other options highlight common misconceptions or features that do not apply universally to savings accounts. While some accounts may incur monthly fees, many savings accounts are designed to be fee-free, particularly when certain conditions, such as maintaining a minimum balance, are met. Additionally, while some savings accounts may require a minimum balance, this is not a universal requirement, nor does it necessarily impact the account's ability to earn interest. Lastly, savings accounts are intended primarily for easy access to funds rather than exclusively for long-term investments. They provide liquidity, allowing for easy withdrawals and transfers, making them a popular choice for short- to medium-term savings goals instead of long-term investment strategies.