What is the difference between a savings account and a checking account?

Answer 1

Checking accounts are used for frequent credits (deposits) and debits (withdrawls). Whereas a savings account follows the idea of a piggy bank, where one saves a bulk of money for exceptional circumstances or goals.

Answer 2

a checking account holds your money and allows you to access it very easily at any time you would like.Money in a savings account is harder to access on demand, but the bank will pay you a small percentage of the total for keeping your money in that account.

Answer 3

Ideally you should have one of each. Checking give you more access to your money, but do not pay usually pay interest. Saving accounts are designed for people to have an easy place to store the money they do not plan on spending immediately. Savings accounts tend to earn small amounts of interest.

It is actually better to invest money you are not planning on spending anytime soon to make more money

Answer 4

This depends entirely on what it is that you want the account for. If you're trying to gain interest on your money, probably a savings account is better, but by how much depends on the bank and the rates they are giving you. If you mainly want an easy way to store and spend money, a checking account is probably the way to go.

Answer 5

Checking accounts are used for frequent credits (deposits) and debits (withdrawls). Whereas a savings account follows the idea of a piggy bank, where one saves a bulk of money for exceptional circumstances or goals.

Answer 6

The main difference between a savings account and a checking account is that a savings account has an interest rate. A savings account is also mostly used for saving money, although, both accounts allow you to take money from them as you please.

Answer 7

Having both a checking and savings account is often a good idea. A checking account is designed to help you deal with the cash inflows and outflows to run your life (writing checks, ATM/cash cards, automated bil payments). A savings account will pay interest on the money in it. There may be restricitons on how you can access your money in the account -- this allows the bank to pay you a higher interest rate. A bank or credit union usually has a range of accounts or set of acounts that will meet your needs. There are hybrid accounts that allow you to earn interest and write checks, have an ATM card, etc. A separate savings account can help you manage your money buy removing it from the one you use for your regular expenditures (you will be less likely to spend it!).

Answer 8

A savings account earns interest.

Answer 9

cause checking account is more safe