Checking vs. Savings: What Beginners Should Know
Understand the difference, typical fees, and how interest works—plus simple tips to avoid surprises.
At a glance
| Feature | Checking | Savings |
|---|---|---|
| Primary use | Everyday spending & bills | Short‑ to mid‑term saving |
| Interest | Usually low or none | Usually higher than checking |
| Fees | Possible monthly/ATM/overdraft fees | Possible withdrawal limits or minimums |
| Access | Debit card, checks, ACH | Transfers to checking; limited direct payments |
Tips
- Choose FDIC‑insured institutions when possible.
- Watch minimum balance and monthly fees; set alerts.
- Use savings automation (recurring transfers) to build a cushion.
For definitions and consumer protections, see the CFPB.