Checking account vs saving account
Your checking account and saving account are completely different by feature. In checking account, you put your money if you need easy access to it. And we use saving account to save money. If you understand the difference between checking account and savings account, you can decide which is better for you.
Checking account pros & cons
Transaction: Basically, Checking account has no limit of a transaction, You can unlimited transactions. And also can withdraw your money any time without any limitation.
Interest: Checking account bearing low interest, sometimes zero interest.
Fees: Maintaining a checking account is very expensive. You should pay lots of fees. Some of the Bank offers free no minimum balance fee but can charge fees for account overdrafts and for certain types of bank services, like handling paper bank statements. Some of checking account fees:-
- Minimum balance fee
- Bank overdraft fee
- ATM fee
- Foreign transaction fee
- Return deposit fee
Security: Checking account funds are insured by FDIC. And a canceled check is a proof that you paid a bill.
Saving account pros & cons
Interest: Saving accounts are basically used to save money. You can get a higher interest rate in your saving account. It varies bank to bank.
Fees: Saving accounts monthly maintenance fees are very low according to Checking account. But saving account transaction is limited. So, you should pay extra fees for the extra transaction.
What is best for us
It's very simple if you want to save your money with higher interest, go for a saving account. If you don't have any problem with the limited transaction and you don't want to pay higher maintenance charge Saving account is a good option for you.
But, if want unlimited transaction and withdraw, Checking account is better for you. If you are a businessman you should open a checking account. Because business needs unlimited transactions.
If your business is incorporated, the IRS requires a business checking account.
But, if want unlimited transaction and withdraw, Checking account is better for you. If you are a businessman you should open a checking account. Because business needs unlimited transactions.
If your business is incorporated, the IRS requires a business checking account.
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