Saving vs Checking Account: Understand the Difference

Saving vs Checking Account

What is the question you have about Saving vs Checking Account? And which do you think is the best for you?

Well in this context we will be discussing each of them singly for better understanding and you will see which one best suits you.

Savings Account or Saving Account

This account is basically used for saving funds for purposes best known to the holder, it can be used for saving funds for school fee, travel, projects, future bills etc. as the name of this account implies, savings account are basically used for saving.

Savings account holders earn some interest which is normally added to their total sum in the account on monthly basis. 

Savings account does not use checks.

If you have a chance to create one simply do it because it is cheaper to operate as it attracts fewer fees and APY varies from bank to bank.

You can transact with your savings account and send funds and receive any day at any time either with your bank’s app, USSD, NIP or via ATMs, but charges may apply depending on the bank you operate.

Savings and Checking accounts explained

What is a Checking Account?

A checking account is also called a “current account” it is operated mostly by businessmen, it features allow regular deposit and withdrawal.

This account comes with a chequebook which may allow you to mandate someone else to cash from your account with a written and signed check, current account holders can also get a debit card to help them access cash at will and also pay bills.

Read also: Guide to Chase Business Checking Accounts [Complete, Performance, Platinum]

The fact is checking accounts is best for those who transact regularly.

And the major benefit of a checking account over a savings account is checking account does not involve many charges as compared to a savings account.

Importance

Here is the importance of a checking account vs a savings account

  • Cash can be made available with or without the account holder of a checking account via written checks.
  • Savings account gives interest in percent to the account holder for the money deposited overtime while checking account does not.
  • Savings account has higher fee charges for transactions than checking account.
  • It is easy to have both savings and checking account with the same bank, because you are charged nothing or less for transfer within same banks

Saving vs Checking Accounts which is best for you?

The question of which account is best for you should be basically determined by the features that are most favorable to you the intended account holder.

So simply check the one that has the options that will benefit you the most and sign up for the account that suits you the most.  

And before signing up for any account types make sure you read recommendations and select the ones that have higher interest rates and lower service charges also know the APY, terms and conditions involved with either saving or checking account.

You may also like: Mastercard Luxury Card: Guide on Applications, Rewards, and FAQs

FAQs about Saving and Checking accounts.

Does a saving account give the best interest for my money?

A saving account is a great way to extend your money. But this is not your only option to get high interest rates anyways.

Will I lose my funds if the bank I created a saving account with closes down?

All banks have insurance with Federal Deposit Insurance Corporation such that all funds from all forms of account are not lost even when they shut down or experience a major loss.

Recommendations

  • If you earn huge figures and you wish to keep some money for future plans, a savings account is the best for you.
  • If you just got a contract to set up a facility or whatever it is that will require you to make withdrawals quick, a checking account is best for you.

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