Benefits of having both checking and savings 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 – you can 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.
- Earn interest – even though interest rates are currently low, you can still 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 go to your savings account, you’ll automatically save money without having to think about it!
- Use in an emergency – if you need to access your savings account funds due to an emergency, you’ll have access to withdraw or transfer money to another account to help you pay for the expense, oftentimes without a penalty for withdrawing funds.
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.
Learn how to better manage your money to build a stronger financial future for you and your loved ones through the Family Finances playlist on the UMB Financial Education Center.