Why would someone use a checking account instead of a savings account?(1 point)
Responses
She needs a place to store her money that will be easy to access.
She needs a place to store her money that will be easy to access.
She wants to earn interest on the money she stores.
She wants to earn interest on the money she stores.
She wants to be guaranteed that she won't pay a fee.
She wants to be guaranteed that she won't pay a fee.
She wants to be able to buy items on credit.
She wants to be able to buy items on credit.
The most suitable response is: She needs a place to store her money that will be easy to access.
The correct answer is "She needs a place to store her money that will be easy to access." There are several reasons why someone might prefer to use a checking account instead of a savings account.
1. Convenience and Accessibility: Checking accounts allow for easy access to funds. With a checking account, you typically receive a debit card and checks, making it convenient to make payments or withdraw cash. This is especially useful for day-to-day expenses, such as groceries, bills, or other regular spending needs.
2. Bill Payments: Checking accounts often come with online banking features that facilitate bill payments. This makes it easier to manage and pay bills directly from the account, saving time and effort.
3. Overdraft Protection: Many checking accounts offer overdraft protection, which means that if you accidentally spend more money than you have in the account, the bank may cover the shortfall. This can help prevent declined payments or bounced checks.
4. No Transaction Limits: Unlike savings accounts, checking accounts generally do not have a limit on the number of transactions you can make within a certain period. This makes it more suitable for frequent or large transactions, such as depositing paychecks or making regular purchases.
It is worth noting that while savings accounts may offer higher interest rates, they often have restrictions on the number of withdrawals or transactions allowed per month. Therefore, if someone requires easy access to their money for everyday expenses and wants the flexibility of making numerous transactions without penalty, a checking account would be a more suitable choice.