What is the main differences between checking and savings accounts?
The main differences between checking and savings accounts are:
1. Purpose: A checking account is typically used for everyday transactions such as paying bills, making purchases, and withdrawing cash. A savings account is designed for long-term saving and is not intended for frequent withdrawals or transactions.
2. Interest: Savings accounts generally offer higher interest rates than checking accounts, allowing your money to grow over time. Checking accounts typically offer little to no interest on the funds deposited.
3. Fees: Checking accounts may have fees associated with them, such as maintenance fees, ATM fees, and overdraft fees. Savings accounts also may have fees, but they are generally lower and can sometimes be waived if certain requirements are met.
4. Access to funds: Checking accounts offer easy access to your funds through checks, debit cards, and online transfers. Savings accounts usually have limitations on withdrawals and transfers, often restricted to a certain number of transactions per month.
5. Minimum balance requirements: Some checking and savings accounts may require a minimum balance to avoid fees or qualify for certain perks. However, savings accounts generally have higher minimum balance requirements compared to checking accounts.