Are you looking to become more financially responsible? Learn more about the benefits of having both a checking and savings account to improve your spending.
The foundation of our world centers around finances; how much you save, how much you spend, and what you spend your money on. No matter your age or understanding of finances, you must understand the benefits of having both a checking and savings account.
There are some obvious differences between checking and savings accounts. Firstly, checking accounts are designed for everyday purchases: groceries, gas, personal care items, restaurants, and shopping! A savings account stores money and is meant for withdraws only as needed.
Benefits of a Checking Account
Opening a checking account is the perfect first step to spending money without only using cash for your purchases each day.
Debit Card
You spend money through your checking account by using a debit card. This is perfect for typical expenses. You can also use your debit card at ATMs for cash withdrawals at any time.
Direct Deposits
As you’re earning money from your job, you can set up direct deposits with your checking account. Your employer will send your paychecks directly to this account! As expenses arise, you know your paycheck will appear in your checking account.
Checks
You can easily order paper checks for your checking account. You can have them ready when needed to pay off purchases requiring physical checks, such as rent.
Automatic Payments
Setting up automatic payments from your checking account allows you to stay on top of payments and avoid late fees.
Benefits of a Savings Account
You can create various types of savings accounts; finding a good savings account with your bank provider is the best way to start saving!
Low Monthly Fees
Some bank providers will charge monthly fees for you to store your money in a saving account. These charges come from general maintenance fees or excessive withdrawals from your account. Regardless, many saving accounts are available with low monthly fees that will help you grow your savings!
High Interest Rates
A savings account with high-interest rates is also known as a high-yield savings account. You will accrue interest rates on your deposits with this type of savings account. These savings accounts are a little above the traditional ones. Interest rates may fluctuate, but a low-risk savings account will only grow your earnings.
Accessibility
Keep frequent accessibility in mind when choosing a savings account if it’s something you need! Some accounts will charge for frequent withdraws; others are meant to leave the money untouched for several years. Choose a savings account that will meet your spending and saving needs!
Keeping your checking and savings accounts separate will ensure you are effectively administering your earnings. There are many benefits of having both a checking and savings account to help you begin your journey of properly spending and saving money.
