Checking vs. Savings Account

Checking vs. Savings Account

December 17, 2019

Tagged As: Personal

Checking and Savings accounts are two basic accounts offered by financial institutions. They serve the same overall purpose—to house your money—but have a few key differences. 

Checking Account 

A checking account is used for day-to-day banking. This includes activities and transactions like depositing and withdrawing money, writing checks, direct depositing your paycheck, transferring money to other accounts, and accessing your money through a debit card. In addition, most checking accounts allow an unlimited amount of transactions per month. This is an important aspect to remember when deciding what kind of a bank account is right for you. 

Savings Account 

In comparison to checking accounts, a saving account’s purpose is to house your money over the long-term with minimal withdrawal transactions and activities on the account. A savings account is a safe place to store your money and allows access when needed, but limits how many transactions happen on the account per month. For this reason, it may be beneficial to have a savings account in addition to a checking account where you are not limited to a certain amount of transactions per month. 

When looking for checking or savings accounts, make sure you find one that has no minimum balance requirement, doesn’t charge monthly maintenance fees, and is a part of a large ATM network so you don’t have to pay to access your money. 

If you are interested in learning more about the accounts Hills Bank offers, visit us online at HillsBank.com to live chat with us, speak with a banker at 1-800-445-5725, or stop by any of our locations to have a conversation today!