If you have money in a US bank account, there are some caveats that come with it and tax implications. The biggest tax problem with savings is duty on the interest you get. An Overview of the Major U.S. Bank Tax Consequences on Your Savings

Tax on Interest Income

The interest you earn on your savings account is taxable income. The interest that you earn on your savings account (be it in a traditional bank account, high-yield savings accounts, or certificate of deposit) is taxable income and needs to be reported to the IRS. You will usually get a Form 1099-INT from the bank if you earn $10 or more in interest. You must report this income on your federal tax return. This interest is taxed at the rate for your ordinary income (unless, of course, you are in a 0% tax bracket). Meaning, if you are in the 22% tax bracket —you will pay 22% on the interest earned.

Interest Income from State Taxes

Interest income is taxed by some states as well as the federal government. State Tax Rules Vary The good news is that most states exempt some or all interest from state income tax; however, in Florida and Texas there are no state taxes because they do not have a personal income tax.) But in those states that have an income tax… the money you earn on savings can also be subject to state tax. Check your state tax rules to be sure about whether you owe taxes on savings interest.

Tax-Deferred Savings Options

Tax-deferred saving options like that of individual retirement accounts (IRAs) where your money grows tax-free until you take it out. With a traditional IRA, you owe tax on interest only when you take the money out during retirement. But naturally these accounts come with its limitations and terms in the option, for example charges if you withdraw early etc. Tax-deferred accounts are ideal if you have long-term things in mind and one of which is for retirement, it's a smart strategy to reduce taxes on savings.

Knowing the tax implications of where you keep your savings is beneficial to properly plan, and to ensure that you grow as much return in those types of accounts. Monitor the accrual of interest and be mindful of federal and state tax laws.

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