Checking accounts are transactional accounts and truly a must for anyone who has bills to pay. Checking accounts easily allow you to work with the existing societal fabric when it comes to living large in the good ol’ USA. Customers will open a checking account with the financial institution of their choice and then they will be provided with checks, online bill paying services, and an ATM card that will allow them to pay for goods and services. By managing a checking account properly, the first steps are being established for building a solid credit history for you.
A savings account is a type of deposit account, where money is held for safekeeping. Because checking accounts are not typically interest bearing, savings accounts are a great way to store your extra cash and earn a guaranteed rate of return. Saving your extra cash in a FDIC protected bank is a much smarter strategy than hiding your money under your mattress.
Savings accounts and checking accounts go together like peanut butter and jelly, they are both good on their own, but are even better when combined. Consumers should have both a savings account and a checking account in order to truly reap the individual benefits provided by both. At various times during the day, you may find you need quick access to your money and your checking account will allow that. Other times, you may find you have extra money and want to save it for an emergency fund and that is where a savings account will come into play. To build financial independence for yourself, you truly do need both – savings account and checking account.
Having organized finances in the cornerstone to every American success story. There are essential tools needed for the most basic financial freedoms to be enjoyed. Having both a savings account and a checking account will greatly enhance your quality of life and the economic groundwork that you plan on building for yourself.