Savings vs Checking Accounts
Understanding the differences between a savings account and a checking account can be confusing if you haven't done your research. This page will clear up any questions you have and compare and contrast the two accounts.
- Main purpose is to save money
- Make deposits
- Interest bearing
- Transactions are limited, not intended for daily use
- Can’t use checks or debit cards
- Can open an account before the age of 18 (usually signed on with a parent)
- If you have extra money in your checking account, put it in your savings account so it can accumulate interest.
- Main purpose is to use money
- Withdraw money
- Zero or very low interest-bearing
- Used for transactions, transactions are usually unlimited. Intended for daily use
- Use checks and an ATM/debit card to use and access your money
- Must be 18 or older to create a checking account
- If you need money in your checking account, take it out of savings