checking v savings?

Question

do savings accounts have a higher interest rate than checking?

Answer 1

Yes, checking accounts usually don't pay any interest, they are just checking accounts, meaning you can write checks and use debit cards to withdraw the money.

Savings accounts on the other hand are primarily kept to earn interest. You get paid interest every month at a certain rate, but some have restrictions as to what you can take out, how much, and when.

But if you're looking to save money, definitely open a savings account. You can open one at the same bank as your current checking account, or with a company such as ING Direct online.

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Answer 2

Usually.

In fact these days most checking accounts charge YOU 'interest' by way of fees and activity charges!

It's a good idea to have one of each, though, for a host of reasons. But you can always have your checking account at a bank near you, and link it to an online savings account that pays great interest. (Several banks like ING will pay higher interest the more you save, and will link to any regular bank's checking account)

Answer 3

more often then not savings account will have a higher interest rate if the checking account has an interest rate at all.

Answer 4

As a rule YES.... but if you check out some "credit unions" they offer checking accounts with a nice interest rate IF you keep a certain amount of money in it and NEVER go below that amount. Many people can't figure out how to do that which is why they don't take advantage of it.

If you are smart with your money, you will have no problem doing that so ask around at all the banks and financial institutions.

: )

Answer 5

Yes the do but not a huge difference.I heard that credit union gives very high interest rate on savings acct.

Answer 6

Usually they do, but it's not quite as easy to access the money. If your bank has an online option, you can probably switch the money from checking to savings as needed.