Saving and checking accounts have different characteristics that make them suitable for different uses. All saving and checking accounts have specific terms that are explained and established by the banks that offer them.
Checking account features:
Generally checking account don’t pay interest. In case bank offers interest on a special type of checking account then rate of interest much smaller than saving account. In checking account you can create unlimited withdrawls, you can use of debit card and you can get the ability to pay with personal checks.
Saving account features:
You can earn interest on the funds in this account, this is the primary feature of the saving account, For that bank uses the funds in saving account to give loans customers and conduct other businesses. It requires a minimum balance in these account to ensure that bank has sufficient funds at its disposal and it allows number of with-drawls per statement cycle.
Warnings:
If the account falls below the minimum balance then some saving accounts charge a fee.
Checking account usually don’t charge this penalty you write checks for extra money than account’s balance.
Saving account takes more time to transfer the money than checking account. You can transfer the money from checking account by the next business day but it will take up to 5 days from saving account.
Here there are several types of saving and checking accounts. There are 2 common type of checking account are express checking and joint checking.
There are 2 common types of saving account are high-yield saving account and passbook accounts.