Checking vs. Saving: Which Is a Better Bank Account?

With so many options for saving and checking accounts, it can be overwhelming to choose the right account for your needs. This post has outlined the pros and cons of checking vs. saving accounts to help you make an informed decision about which type of bank product is best for your situation.


First of all, let’s talk about fees. Checking accounts usually charge more in fees than savings accounts do—but not always! Depending on the type of checking account you choose (e.g., free checking vs. premium) and where it’s located (some banks are known for charging more than others), monthly maintenance fees could range from $0-$25 or more per month.

You might also be charged for using ATMs that aren’t owned by your bank or for overdrawing your account by taking out too much money at once. Savings accounts generally have no such charges; you get one interest rate regardless of how much money is in there or what kind of transactions are made with it (though there may still be some withdrawal limitations).

Interest Earned

Savings accounts are designed to save money for the long term. Because of this, they tend to have very low-interest rates. On the other hand, checking accounts are meant for depositing and withdrawing cash regularly—a process that can often result in fees being charged by banks.

Both types of bank accounts can help you get into good financial habits: if you’re looking for an account where you can make deposits and withdrawals at will without worrying about paying fees or getting hit with overdraft charges, then checking is probably your best bet; if you’re looking for something that will let you set aside funds with long-term goals in mind (such as buying a house or starting your own business), then savings might fit the bill better.

Withdrawal Restrictions

Accounts like Checking and savings account seem like useful tools, but they differ in how much flexibility their holders have. For example, with a checking account, you can access your money whenever you need it—as long as the funds are there.

But with some savings accounts, withdrawals may require more than just paying a fee: They may also take time to process or even be impossible, depending on your bank’s rules. So it’s important to know what type of account will work best for your situation to avoid any unnecessary headaches later on down the road.

Financial planners like SoFi say, “Peace of mind can come with savings. Having a savings account can help you feel more secure as you work toward your financial goals.”


Access is the main difference between a checking account and a savings account. A checking account allows you to make deposits, withdrawals, and transfers between other accounts in your name at the same bank (for example, from your savings to your checking). You can also write checks against it. A savings account does not allow any of these things—you cannot deposit or withdraw money from it or transfer funds between other accounts held at that bank.

The most important thing is to open an account with a bank or financial institution that offers services that align with your goals and lifestyle. Don’t just go by rates, fees, or other factors: talk to someone in person (if possible) and find out what they can do for you!

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