What is the difference between a checking account and a savings account?

Here are the important differences between checking and savings accounts and ways to make the most of them. The primary benefit of a checking account is to provide you with access to your money for everyday needs. Savings accounts, on the other hand, enable you to set aside money for longer-term goals. Savings accounts pay interest on balances.

Should you use a checking account or a savings account?

Checking accounts are better for regular transactions such as purchases, bill payments and ATM withdrawals. They typically earn less interest — or none. Savings accounts are better for storing money. Your funds typically earn more interest. You might have a monthly limit on how often you can withdraw money without paying a fee.

Should you open a checking and a savings account at the same bank?

Since both savings and checking accounts are used for different reasons, having both can help you more easily handle your cash. Opening your checking and savings accounts at the same bank can make managing your money more convenient, as you’ll be able to easily make transfers between the accounts and review both accounts all in one place.