What are the Benefits of Having a Savings and A Checkings Account?

Question

I have a Checking, Savings and Credit Card Account

But, I just Realised that I can move my Savings over to my Checkings and just have the 2 accounts.

What are the benefits of Having a Savings Account?
What do I get out of it?(Aside from the puny interest plus on it)
Do I get Credit Points for having so much $$ on the Account?
Does it look better for Creditors of I have a Savings Account AND a Checkings?

I'm Planning to buy a Car, so my Main interest is Credit wise...

And if it dosen't help.. then I fail to see the point/benefits of having a Savings Account.

Answer 1

It helps to show creditors that you are saving and are financially responsible and it also helps you to put some money aside and forget that it exists.

Answer 2

Well , my savings account gets almost 5% interest and the checking gets none but lets me pay bills .

Although , now , Schwab has a checking account that pays over 4% on the balances . . .
Am thinking about doing that but . . .

Citi has good eSavings rates and allows for easy online transfer of $$$ when you need to move it to checking to pay a bill .

Re : Credit / FICO -
That is about your debt to income ratio and Never being late on payments .

http://en.wikipedia.org/wiki/FICO_score

>

Answer 3

Saving your money is useless.......INVEST your money!
banks pay you very little to use your money.
Try a money market or a stock that pays a decent dividend.