What is the difference between a savings account and a checking account?

A savings account and a checking account are two different types of bank accounts that serve different purposes.

A savings account is designed for individuals to deposit and save their money. It typically earns interest on the deposited funds, which means the balance grows over time. Savings accounts usually have limits on the number of withdrawals or transfers that can be made each month. They are a good option for building an emergency fund or saving for a specific goal, such as a down payment on a home.

A checking account, on the other hand, is a transactional account that allows individuals to deposit and withdraw money as needed. It is often used to pay bills and make purchases using a debit card or checks. Checking accounts typically don't earn interest, and some may charge fees if the account balance falls below a certain amount. They are a good option for managing daytoday expenses and keeping your money safe while allowing easy access to it.