What is the difference between Checking and Savings?

Checking account and savings account are popular confusing financial terms. Checking accounts are bank deposits that allow everyday transactions, while savings accounts do not allow daily use. A savings account has a higher interest than a checking account.

A checking account is accessible anytime, while a savings account must first transfer the money to a checking account. The checking account has no withdrawal limits, while the withdrawal limits for the savings accounts are six per month. The minimum balance for each account varies by bank.

The primary purpose of a checking account is spending, which includes purchases, bills payments, while that of a savings account is to save. The checking account offers debit cards and checks for spending money.

A checking account is known to be a type of bank deposit that can be used for some types of money transactions. The money that can be placed in the savings account is meant to be saved for a long time. The main goal of the savings account is to make sure that the money that will be left there can be used for a certain period of time.

When this happens, the money will start to earn interest. It will get bigger in the future. Most people are recommended to have both so that they can start saving better. Those that will be in the checking account can be used for daily transactions.