A checking account is a transactional deposit account held at a financial institution that allows for withdrawals and deposits. Money held in a checking account is liquid, and can be withdrawn using checks, automated cash machines and electronic debits, among other methods.
A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include business accounts, student accounts and joint accounts along with many other types of accounts which offer similar features.
A savings account is a deposit account held at a bank or other financial institution that provides principal security and a modest interest rate. Depending on the specific type of savings account, the account holder may not be able to write checks from the account (without incurring extra fees or expenses) and the account is likely to have a limited number of free transfers/transactions. Savings account funds are considered one of the most liquid investments outside of demand accounts and cash.
In contrast to savings accounts,checking accounts allow you to write checks and use electronic debit to access your funds inside the account. Savings accounts are generally for money that you don’t intend to use for daily expenses. To open a savings account, simply go down to your local bank with proper identification and ask to open an account.