Every adult should know how to save money, which the likes of Robert Jain can attest. This may not be easy for everyone, though, which is why it may be in your best interest to open either a checking account, savings account, or even both. These accounts make all the difference in the world from a financial standpoint, but what makes them separate entities? The following differences should provide helpful insight into the matter.
Before discussing the differences between savings & checking accounts, it may be prudent to discuss the similarities. The most prevalent, as names such as Bob Jain will tell you, is that they are used to hold money. Furthermore, they can be accessed at any time with the use of one's bank or debit card. Withdrawals and deposits can be made as customers deem necessary. These are just a few similarities that these accounts share.
When discussing checking accounts, their general use should be discussed at the onset. These are used far more often than savings accounts, with customers regularly accessing them each day or every few days. They are also different from savings accounts in the sense that they typically don't have withdrawal restrictions. What this means is that you take as much money out as you'd like, as many times as you please, depending on your card's limit.
Savings accounts, on the other hand, are meant to be used with long-term mindsets in place. For those that don't know, the money that's brought into this account is meant to be used for larger purchases down the road. These run the gamut from new cars to housing, so it's not like bank customers are encouraged to take out money whenever they please. This is especially true when you consider that many savings accounts pay interest, which makes it all the more worthwhile to leave the money alone.
Now that you know what checking and savings accounts entail, at least on a general level, you may be curious to know which one is better. This is a difficult question to answer because, simply put, they are separate entities. One isn't necessarily the better option because they are used for different reasons. For those that haven't opened either account yet, it's recommended that you open both. Your financial situation will be better for it.
Before discussing the differences between savings & checking accounts, it may be prudent to discuss the similarities. The most prevalent, as names such as Bob Jain will tell you, is that they are used to hold money. Furthermore, they can be accessed at any time with the use of one's bank or debit card. Withdrawals and deposits can be made as customers deem necessary. These are just a few similarities that these accounts share.
When discussing checking accounts, their general use should be discussed at the onset. These are used far more often than savings accounts, with customers regularly accessing them each day or every few days. They are also different from savings accounts in the sense that they typically don't have withdrawal restrictions. What this means is that you take as much money out as you'd like, as many times as you please, depending on your card's limit.
Savings accounts, on the other hand, are meant to be used with long-term mindsets in place. For those that don't know, the money that's brought into this account is meant to be used for larger purchases down the road. These run the gamut from new cars to housing, so it's not like bank customers are encouraged to take out money whenever they please. This is especially true when you consider that many savings accounts pay interest, which makes it all the more worthwhile to leave the money alone.
Now that you know what checking and savings accounts entail, at least on a general level, you may be curious to know which one is better. This is a difficult question to answer because, simply put, they are separate entities. One isn't necessarily the better option because they are used for different reasons. For those that haven't opened either account yet, it's recommended that you open both. Your financial situation will be better for it.
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