Checking vs. Savings
Checking
Offers easy access to your funds:
ATM withdrawals (may be capped at a certain amount daily)
Debit card takes funds directly from your account
Comes with a traditional checkbook
Easy transfers to pay bills online
Savings
Designed to save for long-term goals:
Typically offers higher interest rates
Limited access so you won’t be tempted to use for impulse buys
You may need to move money into checking to make frequent withdrawals
Can be linked to checking so you can transfer funds between accounts
You might use it for …
· Paying bills
· Grocery or other everyday shopping
· Building an emergency fund
· Saving for a big-ticket item, like a vacation or a car
You might pay fees for …
· Not carrying a minimum balance
· Using other banks’ ATMs
· Withdrawing more money than is available in your account
Savings
· Not carrying a minimum balance
· Excessive withdrawals—different banks have different rules
The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category. That means you’re protected if your bank were to fail.
