The difference between checking and saving account
A checking account is a type of bank account that is designed for daily transactions. a saving account is not made for daily transactions, it is designed for saving money and it is the best account for people trying to save towards a long term goal, that way they keep their money secure and also acquire interest. A saving account usually have a much higher interest rate than a checking account. it is advisable for every individual to have both accounts becuase you get to organize how you spend and how you save your money much better. Funds that are to be spent in the far future should be kept in a savings account, that way you get a lot of interest rather then in a checking account, funds like your children college tuition and emergency funds, etc. Funds left in a checking account are usually funds for the monthly expense like, rent and your monthly needs. The fees and other criteria for checking and savings accounts such as monthly account maintenance fees, minimum account balances, and interest rates vary slightly from one bank to another.
CHECKING Vs SAVING
| Checking Account | Savings Account | |
| Access | Anytime | To use money, account holder must first transfer it to checking account (usually) |
|
Withdrawal restriction |
None | Typically, 3-6 withdrawals a month. |
| Minimum Balance | Usually $25 but most times varies by bank | Usually $25 but most times varies by bank |
| Designed for | Frequent Use and daily transactions | Saving money risk-free for short- or long-term |
| Interest earned | NONE | Yes, but varies wildly by bank |
| Overview | A type of bank account that is designed for everyday money transactions.
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An account that accrues more interest than a checking account does; intended for saving money.
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Checking accounts often come with a debit card which enables withdrawals from an ATM and pay for items in stores. Debit cards only allow users to spend money that is available in the account.
Savings accounts typically do not come with debit cards, but an ATM will be offered if requested. you cannot make purchases with this card but you are allowed a limited amount of withdrawals per month.
