Best Answer

Generally a savings account pays more interest, but there are some checking accounts that offer rates that are very competitive to savings accounts.

User Avatar

Wiki User

โˆ™ 2011-01-17 16:57:57
This answer is:
User Avatar
Study guides


22 cards

What if previous employer will not return a call for a reference

What information does a cardholder account profile include

How can you filter the list of transactions

Where would you look to find your available credit

See all cards
2 Reviews

Add your answer:

Earn +20 pts
Q: Which pays a higher rate of interest a checking account or a savings account?
Write your answer...
Still have questions?
magnify glass
Related questions

Which has a higher interest rate checking or saving?

Savings account has a higher interest rate than a checking account

What is the purpose of high interest checking?

"A high interst checking account is a type of checking account that earns interest. Usually these accounts have higher interest than a regular checking account, but not as high as a savings account."

Are there more fees in a checking account compared to a savings account?

Most checking accounts have no fees. Savings account has more fees than checking accounts because of the higher interest yields available in a savings account.

Why is a savings account better than a checking account?

A savings account may pay higher interest rate than a checking account. Also, you don't have bounced checks, and NSF fees, normally.

What is savings bank account?

A savings bank account is an account that is designed to store savings. You cannot draw money out of it using a debit card or checks, but it pays a higher interest rate than a checking account.

What is the definition of savings bank?

A savings bank is a bank that is dedicated to savings accounts. They don't have all the freedoms of a checking account, but pay higher interest rates.

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

A savings account is intended for saving money. As such, it has a higher interest rate. A checking account usually do not have an interest rate, but you can use checks and (for some banks) debit cards to withdraw money.

Do you know if banks will still give high interest rates on savings accounts compared to a regular checking account?

Most savings accounts hold little to no interest rate currently. They are basically the same as a checking account. If you are looking for higher yield interest, consider purchasing a CD.

What is the definition of saving bank?

A savings bank is a bank that is dedicated to savings accounts. They don't have all the freedoms of a checking account, but pay higher interest rates.

Why does a savings account make a better investment than a checking count?

Savings accounts usually have higher interest earning rates as the money is more stable than a checking account whose balance fluctuates with income and expenses.

How is a checking account different than a saving account?

Both Checking Accounts and Savings Accounts are basic types of bank accounts provided by banks to their customers. The difference is: a. There are limitations on the number of trasactions that can be performed in a savings account on a per month basis whereas for checking accounts there are no limitations b. The interest rate offered by banks on savings account is much higher than what is offered on checking accounts because banks offer almost no interest in them

What is high interest savings?

This would be a type of savings account that held your money in a higher interest bracket than a traditional account. There could be higher risk, however.

What is the difference between a checking and savings account in terms of interest rates?

Usually, most checking accounts don't pay interest at all or if they do, a very high minimum balance is needed. Usually when it is available, savings does have more interest paid, but not a significant amount more. Because checking accounts are made to be used, interest is often lower. Savings, and variations of it, tend to be higher because it is not often.

What is considered to be a high interest savings account rate?

High interest savings account rates vary, depending upon the bank a person selects. A higher interest savings account rate could be anywhere from 0.75% to 1.00%.

What are some of the limitations of a savings account?

One limitation of a savings account is the amount of withdrawals you can make per month. Unlike a checking account, which let's you withdraw money until there are no funds left, savings accounts are restricted to 6 withdrawals per month. Another limitation is that withdrawals usually can only put into a linked checking account- you can't directly transfer funds from a low-interest savings account to a savings account with a higher yield.

Where can I find good interest rates on a checking account?

Interest rates have been low for the past several years, so a great way to gain a higher interest rate on your savings is to invest in a money market account with check writing privileges.

How can bank afford to pay interest on their customers savings account deposits?

The banks loan out the savings deposits at a higher interest than is paid to the savings accounts.

What exactly is a high interest savings account?

With a high interest savings account, the saver can get a large return on their savings. At current rates, the interest can range between 3-5%. However a large amount of accounts with higher interest may impose a penalty if you withdraw from that account.

What is the savings interest rate of Saga Savings?

The savings interest rate of Saga is actually higher than most places. It is rated at about 2.75%. I highly recommend checking it out if you are looking into something like this.

What are high interest savings?

They're accounts that yield higher rate than a regular savings account. There are some minimum requirements to open a high interest savings account, such as maintaining a balance and depositing a minimum amount to open the account.

What distinguishes a direct savings account from a standard account?

A direct saving account is very similar to a standard account. One of the differentiating features is that a direct savings account has a higher interest rate.

What is a CD savings account used for?

A CD savings account is the same as a regular savings account, but for a fixed term such as 6 months or a year or five years. The interest rate on a CD savings account is typically higher than a standard savings account because you are keeping your money in the account until maturity. Once it matures, you can withdraw the amount plus interest accrued.

Is a bank savings account interest rate better than a CD?

No, CD rates are higher, but you cannot withdraw the funds as easily as a bank savings account.

Why can a bank afford to pay an interest rate on a savings account?

because the bank lends money out at a higher interest rate

How do you use earning in a sentence?

I used to be earning a much higher interest rate in my savings account