What are the similarities and differences between checking and a savings account?

Answer 1

BOTH accounts:

- accept unlimited deposits of cash and checks

- are, in the United States, FDIC insured up to the applicable amount

- are liquid, meaning you can withdraw at any time without incurring any penalties (however, there are limitations to the number of TIMES you can withdraw from a savings account in a certain period)

- can have a single owner or multiple owners

- can be accessed using an ATM card at an ATM

- can accrue interest, though checking accounts usually do not

- can be used as overdraft protection on another checking account, though usually this is something only a savings is used for

CHECKING accounts:

- give you access to your funds using checks

- can be withdrawn from an unlimited number of times

- are governed, in the United States, by Regulation CC, which guarantees a certain time frame of availability on deposited checks

- can be accessed using a debit card and/or an ATM card

SAVINGS accounts:

- do not have checks, but can be accessed using a withdrawal slip at the teller line

- can only be withdrawn from 6 times in a given statement period without incurring fees (some banks start charging fees at 3x), per Regulation E