Today we'll be talking about bank accounts - specifically, savings and checking accounts. At some point in life, everyone will have a bank account - and rightly so, because bank accounts are pretty useful. Here's why:
One main feature of a savings account is that you can earn interest on the funds in the account.
It is not usually used directly as money (eg. writing a check).
Chequing accounts generally do not pay interest. If a bank does offer interest on a specific type of checking account, the rate is usually much smaller than one that can be earned on a savings account.
You can typically make unlimited withdrawals from a checking account, and you have the use of a debit card as well the ability to pay with personal checks.
We hope that cleared up the confusion over the two!
The cashsmart Team