Checking vs Savings Account, which one is better? A checking account is tailored for those that need free and regular access to their money. On the other hand, a savings account is for those who want to save more, and spend less of their money.

Read on to discover how checking and savings accounts differ from each other.

Checkings vs Savings Account

Checking vs Savings Account – Differences and Benefits

Account Fees

Most savings accounts do not have maintenance fees, as long as the customer maintains a minimum balance and does not the withdrawal limit. Moreover, some savings accounts do not allow ATM withdrawals, and those that do, impose higher ATM charges to discourage it.

Most banks will charge customers account maintenance fees if they fail to make monthly deposits, or their savings account balance drops below a certain amount. Checking accounts do not have such restrictions, which makes them suitable for everyday use.

Interest Rates

A checking account does not earn you any interest rate, and if it does, it is often quite little. However, all savings accounts earn interest as long as you maintain the required minimum balance.

Credit unions offer the most amount of interest, followed by banks that operate online, and have few or no physical branches. Most banks offer an interest rate that varies from 0.01% to as much as 1%.

Accounts that earn you higher interest rates, also require that you maintain a higher minimum balance.

Bill Payments

Checking accounts allow users to pay bills through online portals, and to shop online using debit cards attached to them. Furthermore, account holders can create standing orders, for recurring bills to get paid automatically.

Such services are not available when you open a savings account.

Debit Cards

When opening a checking account, you also have an option to request a debit card. You can use a debit card to shop online, make ATM withdrawals, and even pay for groceries at a physical store. You cannot apply for a debit card when opening a savings account.

To access funds in a savings account, you have three options. You can go online and transfer them to a checking account, or call your bank to make the transfer, or physically visit your branch to make a withdrawal.

However, there are some banks such as Radius Bank, that offer a savings account with a debit card.


A savings account restricts the number of withdrawals you can make per month or quarterly. A checking account does not have such restrictions, which makes it ideal for personal and business use.

As long as there are funds to deposit or withdraw from your checking account, a bank will not place any limit on how you access your checking account. The exception is when you violate money laundering or terrorism laws.

Checking vs Savings Account – Opening a Bank Account

The idea of opening a savings account is to save as much as possible, and access the funds for emergencies only. With a checking account, the goal is to give you easy access to your money whenever you need it.

We hope that you found this guide on Checking vs Savings Account to be useful, and you will open the right bank account.