It's important to save your money and banks are able to help you do exactly that. For proof of this, all you have to do is look at the various savings & checking options available to you. While they may seem similar in the sense that money can be deposited and withdrawn from them, there are numerous differences that should be covered as well. Here are just a few that the likes of Robert Jain will be able to share.
While checking and savings accounts are different, as we will discuss soon, they are similar in certain ways. One of the reasons people may mistake one for another is the fact that money is held in them. The money in question can also be accessed at any time, courtesy of one's debit card. If there is an ATM nearby, you can access your funds. As names such as Bob Jain will tell you, though, these accounts aren't interchangeable.
Checking accounts are different from savings accounts, however, such as in their use. Anyone that owns the former account will tell you that if it isn't accessed daily, it is used once every few days. What this means is that it gains more regular use than savings. A checking account can be easily accessed anywhere without the risk of penalty, too. These are just a few stark differences that will become immediately evident.
Now let's discuss savings accounts, which are used for more or less what you'd expect. As you'd guessed by the name, they're used to save money, though this is done over an extended period of time. It's not uncommon for someone to open a savings account so that, in the future, they can purchase a new house. This type of account tends to yield more interest, which is paid directly to the consumer. Differences like these matter, to say the least.
With these details in mind, you may want to know whether you should open a checking or savings account. If you were to ask your local bank teller or agent, they would tell you to have both. Seeing as how they serve different purposes, it would be an oversight to choose one instead of the other. You don't have to make this sacrifice, so take the time to open both accounts so that you can handle your money as best as you can.
While checking and savings accounts are different, as we will discuss soon, they are similar in certain ways. One of the reasons people may mistake one for another is the fact that money is held in them. The money in question can also be accessed at any time, courtesy of one's debit card. If there is an ATM nearby, you can access your funds. As names such as Bob Jain will tell you, though, these accounts aren't interchangeable.
Checking accounts are different from savings accounts, however, such as in their use. Anyone that owns the former account will tell you that if it isn't accessed daily, it is used once every few days. What this means is that it gains more regular use than savings. A checking account can be easily accessed anywhere without the risk of penalty, too. These are just a few stark differences that will become immediately evident.
Now let's discuss savings accounts, which are used for more or less what you'd expect. As you'd guessed by the name, they're used to save money, though this is done over an extended period of time. It's not uncommon for someone to open a savings account so that, in the future, they can purchase a new house. This type of account tends to yield more interest, which is paid directly to the consumer. Differences like these matter, to say the least.
With these details in mind, you may want to know whether you should open a checking or savings account. If you were to ask your local bank teller or agent, they would tell you to have both. Seeing as how they serve different purposes, it would be an oversight to choose one instead of the other. You don't have to make this sacrifice, so take the time to open both accounts so that you can handle your money as best as you can.
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Please contact Bobby Jain for more information regarding finance in general.. Free reprint available from: Robert Jain: The Differences Between Checking And Savings Accounts.
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