What's the difference between putting your money in a savings account versus a checking account?

It doesn't seem like a savings account generates much interest.
What's the difference between putting your money in a savings account versus a checking account?
It may not generate much interest but the savings account does have interest and the checking usually does not. The interest is the basic difference. Also, putting money in a checking account usually allows for more fluidity. That is, you have greater access to the cash than you would in a savings account. Since the money stays in the savings account longer, the bank gives interest. The checking account is used for paying items, and the money in the account will fluctuate greatly, and so, the bank doesn't pay interest, usually.





They also used to charge for checking, but it has become the custom to offer free checking nowadays. A lot of banks consider these very small interest-free loans to the bank. So, a lot of these checking accounts allow for banks to have greater sums of money available for loans to customers.





Anyway, savings accounts pay more in interest than checking or money market accounts, but pay less than CDs, which locks your money in for a certain period of time.





If you want safe investment and one that allows you to access the cash, get a savings account. If you want more return with greater risk, and some access to your cash, get stocks or bonds.
Reply:check out ingdirect, emigrantdirect, or hsbcdirect. these online savings accounts are the usually the best option for a decent interest rate and liquidity.
Reply:it generates more then a checking. If you have a higher amount there are also money market accounts and CDs that payout a higher interest rate.
Reply:AND IN A CHECKING ACCT,YOU JUST WRITE CHECKS OR USE YOUR CHECK CARD ,,,SO YOU SAVE NO MONEY.
Reply:to me it's easier to spend my money if it's in a checking account v/s a savings account due to the fact of checks and debit cards. also even though it's not much you get some interest in a savings. i've heard of certain checking accounts getting interest but i bet it's even less then savings accounts.
Reply:You can chose an account with a higher interest rate. Try INGdirect.com.





Plus having a savings account separate from my checking keeps me from dipping - my bank made it easy for me to dip into my savings account by adding an automatic transfer so I didn't have to bother. I couldn't save a dime that way.
Reply:With your checking acct. you don't gain intrest. With your savings acct you do. But let me make a reccomendation. You should put your money into a CD. Most banks will make you put in 250 dollars, but it gains better interest than your savings acct, AND you always have the chance to make it grow better. That's what I've done. I still do have a little savings acct, but my money goes into a CD and I put approx 50 a month into my savings and 150-200 into my CD and its growing quite nicely. Talk to your local bank
Reply:It might feel like most of the answers are going to be the same. But its true, putting your money in a checking account is much different then putting it into a savings account.


With a savings account you get to earn interest.


Plus its not in the same account where you can access your funds at anytime you wish to (checks, debit cards, etc)


If you want to take in one step further, putting your money in a e-savings account insures that you will think very hard before spending that cash because it usually take 3 days to get that money out.


There are many high-yield savings accounts out there that will give you a very high interest rate. Like:


Ing.com and Emirgrantdirect.com