Many individuals and families leverage bank accounts to help them manage their money. Some of the most common account types are checking and savings.
Discover how having a checking account is essential to managing your money on a regular basis. And, learn how a savings account can help extend the life of your money.
The benefits of checking accounts
Accept direct deposits
Checking accounts easily accept direct deposits from your employer, peer-to-peer (P2P) payment apps like Venmo or the IRS for your tax refunds. Gain access to the money as soon as funds post to your account.
Use a debit card
Manage your money by using your debit card, which will automatically deduct purchases from your checking account. You can keep an eye on how much you are spending daily and see the balance of your account with online and mobile banking tools.
Make paying your bills easier
Set up online bill payments to withdraw from your checking account. With online bill pay, you can schedule one-time or recurring payments for your payees, and no longer worry about mailing a check or visiting multiple websites to pay your bills.
The benefits of savings accounts
Earn interest
Typically, savings accounts are interest-bearing, which means you may be able to earn a little extra cash by keeping your money in a savings account.
Set up direct deposits
You can usually designate portions of your paycheck to be distributed to different accounts. If you have a portion deposit to your savings account, you’ll save money from each paycheck without having to think about it.
Use in an emergency or unexpected expense
If you need to access your savings account funds due to an emergency or unexpected expense, you can quickly and easily grab those funds. Depending on your account terms, you may be able to withdraw from your savings multiple times a month without incurring a penalty.
There are several benefits to having both a checking and savings account, and each can be used to help you manage your money and reach your next financial goal.
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