Difference(s) between a Checking and Savings Account?
- Thread starter nycxandy
- Start date
Schadenfreude
Lifer
- Dec 28, 2001
- 11,391
- 3
- 0
are there restrictions on withdrawal for a saving account? I heard you cannot withdraw more than a certain amount in a savings while you can have near-zero dollars in a checking... ???
Rumpltzer
Diamond Member
- Jun 7, 2003
- 4,815
- 33
- 91
In California, checking is often not free and you get no interest at all.
Savings accounts give you interest... maybe 0.15% interest, but it's something... sorta.
Some savings accounts don't come with an ATM card. It depends on the bank and the type of account.
Walk into a bank (or a few) and tell them your situation. Then they can tell you what they have to offer.
Ask friends whether they like their bank.
I've use Bank of America (half a year) and Wells Fargo (four years). Neither impressed me much.
I do like Citibank (two years).
I loved this regional bank in Illinois called Busey Bank. It ruined things for me because I used them for seven years while I was in undergrad and grad school there. It made me think that all banks would be like them. I've been disappointed ever since.
Savings accounts give you interest... maybe 0.15% interest, but it's something... sorta.
Some savings accounts don't come with an ATM card. It depends on the bank and the type of account.
Walk into a bank (or a few) and tell them your situation. Then they can tell you what they have to offer.
Ask friends whether they like their bank.
I've use Bank of America (half a year) and Wells Fargo (four years). Neither impressed me much.
I do like Citibank (two years).
I loved this regional bank in Illinois called Busey Bank. It ruined things for me because I used them for seven years while I was in undergrad and grad school there. It made me think that all banks would be like them. I've been disappointed ever since.
it's usually about interest rates. for example, a year or so ago i opened a checking account and savings account with washington mutual. the checking account had a 0% interest rate and the savings account had a 0.4% interest rate. that .4% interest rate sure was great. i think i made like $2 over the course of a year. hence the reason for closing that account..
MrChad
Lifer
- Aug 22, 2001
- 13,507
- 3
- 81
Savings is good, but in general you should have both.
Checking accounts are generally supposed to be more "liquid", i.e. you add and withdraw funds more frequently from your checking account. You can write checks (obviously) and pay bills online from a checking account.
Savings accounts are for saving
)). There usually aren't as many ways to withdraw money from a savings account as there are from a checking account. The idea is that your savings account should remain relatively static (except for deposits) and earn interest.For Savings accounts, you can only have 3 'electronic' (atm, transfers and ?)withdrawals per month.
One of the big differences is that many savings accounts have federally regulated transaction limits. There's a Federal Reserve Bank regulation called "Regulation D." This limits the amount of withdrawls you can do from a savings account to 6 per calendar month (certain types of transactions count, others don't. look it up for details). If you go over that, they usually penalize you. I had this happen with my savings account once, to the tune of a $30 penalty.
Do a search on "Regulation D savings: in google, and you'll get a lot of info on it.
Do a search on "Regulation D savings: in google, and you'll get a lot of info on it.
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