Skip to Secondary Navigation Skip to Main Content

Current Beehive

SacramentoChange

Sponsored by:
 

What is the difference between checking and savings accounts?

Your savings account is designed to help you prepare for an emergency or an unexpected expense for your car, house, or dorm room.

There are two common types of accounts that you can open at any bank or credit union--checking and savings accounts.

Your checking account is designed for your daily transactions like your bills, your rent or mortgage, or your spending money. Checking accounts usually have lower minimum balances, no limit on the number of transactions, and have an ATM card for managing your account. Using your checking account instead of check cashing and pawn shops can save you hundreds of dollars a year. There is no fee for using your bank or credit union’s ATM to withdraw money from your account, so pick one that is close to your home or work.

Most people seem to try to save a little money each month. Your savings account is designed to help you prepare for an emergency or an unexpected expense for your car, house, or dorm room. Many people open a savings account because most checking accounts won’t earn you interest on your deposits while savings accounts do. Also, when your money is tucked away in savings, it’s easier to forget about it so you can start to build up your savings for other large expenses.

2.80769
Average: 2.8 (26 votes)
Your rating: None

you should really know the proper way to monitor your finances.

»

Well, I agree that if you don't have a lot of money to invest, you can begin your saving habits using a savings account. Savings accounts usually require a minimum amount to get started, sometimes $1 to $25, but it is strongly recommended that you get the details before you put your cash advance in it. Also, many institutions require significantly more money in savings accounts, and will charge a considerable monthly fee if you don't maintain that balance. Simply ask or read the details before opening your savings account.

»

Checking accounts are either zero or very low interest bearing accounts. In contrast, a saving account offers more interest. With a checking account the Federal Government allows you to do an infinite number of transactions (including check writing capabilities, using a debit card, etc…), however savings accounts have limits to how many withdrawals you can do per month (normally do not have check writing capabilities). Note- the reason checking accounts earn less interest is because the Government wants you to save so that banks can borrow that money to fund loans. So, the government offers higher interest rates to the bank for savings account to encourage people to save.
Valentine Smith from http://britainloans.co.uk/

»

I couldn't get a regular checking account because I had problems in the past. I had to end up getting a second chance checking account. If anyone needs help like I did, you can ask for one at a bank. That's where I found out about banks that give you second chances!

»

I just wants to open it as soon as possible.

»