Automotive Business Education Fashion Food Gaming Health Home Improvement Technology Travel

What is the difference between a checking and savings account?

A checking account is generally used for everyday transactions, such as paying bills and making purchases, while a savings account is used for storing money and earning interest on that money. Savings accounts typically have higher interest rates than checking accounts, but also have stricter withdrawal limits and may require a minimum balance to avoid fees. Checking accounts typically don’t earn considerable interest, but may offer the ability to write checks or use a debit card to make purchases.