Difference(s) between a Checking and Savings Account?

[FrustratedUser]

Originally posted by: Jehovah

Originally posted by: captains
interest rate is different

I thought a checking acct. had NO interest rates?

That's what he said. 0% is different from 1%.

 

[EyeMWing]

The way things are set up at my CU, checking has no minimum balance and a small interest rate. Savings has a slightly higher interest rate, and a minimum balance of $10, no fees except the initial balance for the savings. When the checking account is depleted, it will automatically snatch out of the savings acct +$1 service charge. This isn't typical of standard banks, though, they tend to have fees and high minimum balances and such. Talk to someone at the bank, they'll help you get it figured out. Personally, I set up both, but that's because it's essentially free in my situation.

 

[CTrain]

Originally posted by: RossMAN

Originally posted by: andylawcc

Originally posted by: RossMAN
WTF is next?

"How do I write a check?"

"How do I cash a check?"

"How do I make a deposit?"

"What is my credit card owing balance?"

"What does interest rate mean?"

$#@!

how to post reply?

Seriously how fscking stupid are some people? Isn't this basic personal finance which most of us took in high school?

What's next?

"HELP!

I bought a new car last month for $10,500 and tried to pay it off today. The bank is trying to charge me $10,765.65, what the hell is that? They said something like "finance" charges? Am I being ripped off? Should I call CNN and the Iron Chef? Bastards are trying to rip me off by charging me this "finance charge" crap, wtf is that?". Can I sue them, should I call Judge Judy? How do I pay them off, I don't have a bazillion pennies? Can I write them a check? What the hell is a check?

It's only a matter of time before that happens.

$#@!

I thought it was funny.
Seriously a 21yr old doesn't know the difference between checking and savings ??

 

[RossMAN]

Originally posted by: FrustratedUser

Originally posted by: Jehovah

Originally posted by: captains
interest rate is different

I thought a checking acct. had NO interest rates?

That's what he said. 0% is different from 1%.

Most checking accounts are not interest bearing.

If you have a balance of $2,500 or more they usually do pay interest on a checking account.

 

[FrustratedUser]

Originally posted by: RossMAN

Originally posted by: FrustratedUser

Originally posted by: Jehovah

Originally posted by: captains
interest rate is different

I thought a checking acct. had NO interest rates?

That's what he said. 0% is different from 1%.

Most checking accounts are not interest bearing.

If you have a balance of $2,500 or more they usually do pay interest on a checking account.

You don't have to tell ME that.
I was saying that no interest is different from >0%.

 

[trmiv]

Originally posted by: DrPizza

Originally posted by: GeekDrew
Here in Central Ohio, just about every bank offers free checking... some with (low) interest, some without.

I know of at least one bank around here that limits the number of transactions you can make per week on a savings account... though I doubt that's the norm.

I've used both Fifth Third Bank, and National City... I greatly prefer National City... their people seem friendlier if you walk in the bank... of course I know that's location specific

Yes, that is the norm. Federal regulations restrict the number of transactions you can make with a savings account. I had a fit after receiving a rude letter from my bank concerning too many transactions. If it weren't for it being a federal regulation (retarded IMHO) I would have changed banks.

Same thing happened to me. I went over the transaction limit by 3 one month and got tagged for $30.

 

[Gibson486]

whoa.....your 21 and you don't know the difference? ou better start knowing it now.

 

[Kev]

how did this thread get to 56 posts?

 

[silverpig]

The interest on savings accounts from banks is so pitifully low that they're not even worth having. Open a chequing account and an ING account. Tie the chequing to the ING. That way you have a savings account with high interest and no fees (not like the bank) and you still have a chequing account for doing your spending etc.

 

[Linflas]

The simple difference is that checking accounts are demand deposit accounts. Assuming that there are no uncollected funds in the account you can draw the entire balance at anytime you desire. If you read the fine print on savings accounts the banks have the right to put restrictions on your ability to withdraw the money. In reality the difference meant a lot more 100 years ago when bank runs could happen and there was no FDIC.

 

[VirtualLarry]

Originally posted by: RossMAN
Thank you.

The minimum balance requirements vary between financial institutions and the products they offer. One of my local credit unions has a $25 minimum which is pretty common.

:thumbsup:

Credit Union > "normal" Bank, because credit unions often have no/little minimum balance requirement for savings accounts, unlike most of the larger banks.

 

[VirtualLarry]

Originally posted by: Bryophyte
While that's true, it's more common to see accounts with $100 minimum balance requirements to open an account and $300 minimums for free (no monthly fee) savings accounts. To say that "a regular savings account at most mainstream banks...requires a multi-thousand dollar minimum balance, to keep the account open and earning interest." is just plain ridiculous.

Well, let's just say that the last time I checked into it, the minimums were higher than that, and they had to be higher still, to actually be earning interest on the money in the account. I'm on the east coast, stuff here is often very expensive. :|

Perhaps I did exaggerate slightly on the "multi" part. But a $500-600 minimum balance to earn interest isn't unusual. Note that this was a bank, not a credit union, that I was speaking of.

Originally posted by: RossMAN
Most checking accounts are not interest bearing.
If you have a balance of $2,500 or more they usually do pay interest on a checking account.

Perhaps that's what I remember reading - many banks offer combined savings/checking accounts, some of them call them "NOW" accounts, for some reason.

 

[Linflas]

Originally posted by: VirtualLarry

Originally posted by: Bryophyte
While that's true, it's more common to see accounts with $100 minimum balance requirements to open an account and $300 minimums for free (no monthly fee) savings accounts. To say that "a regular savings account at most mainstream banks...requires a multi-thousand dollar minimum balance, to keep the account open and earning interest." is just plain ridiculous.

Well, let's just say that the last time I checked into it, the minimums were higher than that, and they had to be higher still, to actually be earning interest on the money in the account. I'm on the east coast, stuff here is often very expensive. :|

Perhaps I did exaggerate slightly on the "multi" part. But a $500-600 minimum balance to earn interest isn't unusual. Note that this was a bank, not a credit union, that I was speaking of.

Originally posted by: RossMAN
Most checking accounts are not interest bearing.
If you have a balance of $2,500 or more they usually do pay interest on a checking account.

Perhaps that's what I remember reading - many banks offer combined savings/checking accounts, some of them call them "NOW" accounts, for some reason.

Negotiable Order of Withdrawal = NOW accounts. They are interest bearing Demand Deposit Accounts

 

[JW310]

Originally posted by: nycxandy

Originally posted by: andylawcc
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... ???

No clue. I plan on opening a savings with HSBC.

Your best bet with HSBC is a "Free Checking", as they call it, for a checking account, and an Online Savings account. Stay away from their student accounts - they have too many fees associated with them. I just switched my Student Checking to a Free Checking, and now HSBC doesn't charge me $2 every month that my average daily balance in my checking account is less than $200, and they also don't charge me $1 to use non-HSBC ATM's (though the ATM still charges its own service fee). They just started with the Online Savings account, and similar to ING, it requires a very small balance ($1) to earn the 2.75% interest that account provides.

JW

 

[KingNothing]

Originally posted by: RossMAN

Seriously how fscking stupid are some people? Isn't this basic personal finance which most of us took in high school?

What's next?

There's a difference between stupid and ignorant. A cursory glance of his posting history shows a high thread participation/thread starting ratio. Conclusion: doesn't go on the list...yet.

 

[Vic]

Originally posted by: CPA

Originally posted by: andylawcc
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... ???

What idiot told you that?

You can withdraw as much as you want out of a savings account.

I think he meant that savings accounts are limited to 6 withdrawals per calendar month by federal law. Of course, those withdrawals can be as large as the funds in the account... but only 6 per month.


RossMAN, LOL!!! :beer: