When you think about opening an account where you can accumulate money, you are faced with two choices. You can either choose a checking account or a savings account. Essentially, both the accounts allow you to deposit and store money. However, there are a few differences. The choice you make should be based on your requirement.
Savings account
A savings account should be used to save money. This means that the withdrawals should be limited. In order to help you accumulate money, bankers put limitations on the transactions that can be made through this account. Also, you receive a good rate of interest on the money saved. Over the years, you can watch the money in your savings account grow steadily.
Checking account in Casa Grande
A checking account is not created with an intention of saving money for the long term. Rather, this account is to save money so that you can withdraw any amount of money at any time. Unlike a savings account, there are no restrictions imposed on the withdrawal of money. You can either use your debit card or write as many checks as you want. The account is meant to give you easy access to cash whenever you are in need.
So, is checking account better than a savings account?
When you open a checking account in Casa Grande, you enjoy many benefits because you get any time access to your money, which is the biggest benefit of a checking account over savings account.
Secondly, a checking account does not charge money for transactions. A savings account might charge transaction fees. So, every time you withdraw money from a savings account, you end up losing some cash.
The third advantage of a checking account over savings account is the absence of the minimum balance clause. This means that you don?t have to leave a minimum amount in the account at all times. All savings accounts invariably have a minimum balance clause. If your account balance falls below this minimum amount, you have to bear a penalty.
The fourth advantage is that the monetary transaction from a checking account is almost instant, the use of an ATM being an example. With a savings account, the withdrawal process is time taking.
On the flip side, money in a checking account does not grow because there is either no interest paid on the money or very low interest that does not add up to significant amounts in the long run. The other drawback is that there is almost always an age limit for opening a checking account. With most of the banks and other financial institutions, you need to be at least 18 years old to be eligible. Savings account can be opened at any age.
Despite the many benefits of checking accounts, you cannot deny the importance of a savings account for future financial security.
