Do you have a savings account AND a checking account? If so, which account do you have more money in?

Question

Isn't it all really the same? I only have a checking account. Do people normally put their money in savings accounts? I'm kind of confused. I guess it's because from my last question, people had around $200 in their checking account. It doesn't seem like a lot. So where do most people put their money? In savings or in checking accounts? Or in cash? Do most people put their money in a savings account? I thought people would have much more money than $200. What % of money does a checking account consist of compared to one's financial posession overall?

No need to freak out, okay? I'm slow and fat. I don't have computer experience and it's not like I'm going to hack into your account. Geeshh

I know savings gives you interest, but it's not that much. Which is better to have? Is it necessary to have both?

Answer 1

I keep the majority of my cash in savings accounts, and these account pay about 10 times more than I earn on my checking account. I keep enough to pay my current bills and then some extra funds in my checking account. I can always move money between the accounts if I need more funds elsewhere. It doesn't surprise me that many people listed around $200 in their checking accounts. It just offers further proof of Americans' increasing reliance on debt, instead of savings. I wouldn't say you need a specific percentage of your overall money to be in your checking account. If that were the case, my percentage in the checking account would get smaller and smaller, as my savings grows, but my bills remain roughly the same. Again, I try to keep enough for current bills plus a few hundred for emergencies or indulgences. The rest I try to place into opportunities to continue earning money for me.

Answer 2

On the $200 thing, that's because most people (unless they're very wealthy) use checking accounts as bill paying accounts, NOT savings accounts. The reason for this is because most interest bearing checking accounts that would be worth it to leave a large balance in (to get money off the interest) cost a lot to maintain. The bank charges fees, and the minimum balance could be as high as $2,500, even for the lower end interest bearing accounts. Most people don't want to pay fees, so they have 'free' checking.

A lot of people put their money in savings accounts, CD's, IRA's, annuities and stocks. That goes without saying. I don't think people consider this every day pocket money like savings/checking accounts.

Answer 3

savings accounts give you interest. I have less in my savings though, but for a certain reason, i apply for grants for school and they check to see how much money you have in your savings to see if you have money or not. i put most in checking just to pay bills also. Also, there are penaltys after taking money out of your savings more than a couple times a month so it prevents you from taking it out. Checking on the other hand is usually unlimited withdrawls. I also use a debit card usually instead of cash. and i keep some extra money in a safe.

Answer 4

Every person is different. People have varying incomes. Some people may not even have a checking account. Most people have a checking account in which they pay bills out and a savings account for those emergencies.... you know when you need to fix your car. There are some savings accounts out there that have a higher intrest rate than your normal bank. People who have professional jobs have money taken out for their future, such as 401K plans, stocks,and bonds. Personally I have a checking account and two savings accounts. One of my savings acct is for rainy days, while the other one is for vacations.

Answer 5

what most people will do is either
A) set aside x number of dollars per paycheck into the savings account in a vain attempt to save money

OR

B) deposit their paycheck into the checking account and spend normally ie, bills, gas, food, etc. and whatever is left over gets thrown into the savings account

You'd be fine just having a checking account. if you were making a good amount of money then it would be prudent to put it into savings to get at least SOMETHING in interest. but if you're making just enough, then a savings account won't really do much for you.

Answer 6

I have two checking but no savings. I have more in one than the other. Not everyone that has a low balance in their checking is in debit.

Answer 7

Why do you want to know? You're just going on and on and on about this. That was a total waste of five points.

Answer 8

about 1k in checking and 14k in savings they are both linked

Answer 9

savings

Answer 10

i have about 1000 in each