Financial Information
whats the difference between Checkings and Savings Accounts?
Question : whats the difference between Checkings and Savings Accounts?
I know that Savings accounts pay better interest rates than checking accounts.
But if i can withdraw money from the savings account whenever I want, why would I bother with a Checking Account?
What does the Checking account offer that the Savings doesnt?
savings accounts
Best answer:
Answer by SG Elite
For Checking account the bank would issue you a cheque book. This would enable you to issue cheques for purchases especially for big ticket items.
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#2 written by Jaceroo E 1 year ago
OK a checking account is for the money you can spend…the savings account is for the money you do not want to spend…you only need to write checks when you really need the money, so you would have a checking account for your everyday check writing…and also…you only get 3 withdrawals in some period of time…then they charge you a fee.
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#4 written by Yomi Minamino 1 year ago
Savings accounts almost always charge a fee if you draw out money more then four times in a month. Also checking accounts will let you have either checks or a debit card so you don’t have to carry around cash.
Think of it this way if someone takes your cash you just lost your money, if someone takes your debit card you call the bank and in five seconds the card is only a silly piece of plastic that is worth nothing and you still have all your money in the bank, even more so with checks because it takes so long to clear that by the time it gets to the bank they know it wasn’t you and your money is still in the bank safe.
The other thing is at work if they offer auto deposit they will do that for checking but not savings usually.
I would say you would be best to keep half your money in one and half in the other and have them set up at two different banks.
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Checking accounts are those where there is no restrictions on withdrawals from the account and since the turnover in the account is much bank offer low rate of interest. In savings bank accounts there are restrictions on withdrawal say twice a week or like that. In checking account you have to maintain certain specified amount as balance while in savings bank account you can keep as low balance as you like and you have to go to the bank personally to withdraw the amount that is not the case with checking account where you can send anybody by issuing a cheque drawn in favor of self and he can get the payment..