Comments on: What is the difference between a chekcing account and a savings account?

By: brenda

brenda — Mon, 03 Nov 2008 04:28:53 +0000

1) a checking account you can write check or use debit card against the balance in your account save you the trouble of carrying or mailing cash
or buying money orders to pay bill or buy stuff. Also a canceled check is proof that you paid. They may or may not pay interest.

2) a saving account lets you deposit money in a safe place and pays you interest on you balance.

Both are insured by the fdic

I use a checking account and savings both. I pay my monthly bills by check and debit cards and even o-line from my checking account.

as for savings, put aside money each month for bills that come up one or two times a year (like insurance and property taxes in the savings as well as keep my safety net of 6 months expenses in my savings

By: Ken

Ken — Fri, 31 Oct 2008 06:17:27 +0000

Savings accounts as compared to checking accounts usually have these differing qualities:
1. No checkwriting.
2. May limit transactions per month.
3. ATM Access, usually.
4. Higher interest rate

I would refer to specifics from the bank, but these are some general features.

By: sandi_bottoms

sandi_bottoms — Tue, 28 Oct 2008 00:13:53 +0000

LIke Olive Oil said,a Savings account is just that. It’s a place to Save money for either short term or long term saving. Because the money is stable, the bank will pay slightly higher interest to you. A CD account locks your money up for 3, 6, 9 months or even longer. Because you agree not to touch the money for an even longer period, the bank pays even higher interest than your typical pass book savings account.

Checking accounts were devised as a method to avoid having to carry cash around. Loose the cash you lose your money. Lose your check book, your cash is safe in the bank. Atleast that’s the way it was meant when the system started. With modern electronic means, any portion of your identity and account numbers raises your risk.

Yes, you can and should have both types of accounts. Good advice (although you didn’t ask for it) is to save 2% to 5% of your monthly income.
Americans until recently were spenders instead of savors. Houses were used as ATM’s so we could spend spend and spend some more. That’s a big reason for the recession we’re in today. If we saved more and used credit less, there’d be less foreclosures and bank failures and personal bankruptcies etc…

By: chandi_6987

chandi_6987 — Sat, 25 Oct 2008 14:33:59 +0000

the difference is that saving is you can only save money in that account and checking you can deposit and save money.

By: Olive Oil

Olive Oil — Thu, 23 Oct 2008 02:41:37 +0000

A savings account is just what it says.

Checking accounts cost more because you buy checks to pay your bills and the bank uses those checks toward those bills you write out. Savings accounts can’t have checks drawn off of them. It is good to have both a savings and checking account from the same bank because you can set it up with your bank to use the money from your savings to cover a check in case you’ve overdrawn your checking, (this saves you bounced check fees of $25. or more)