Tuesday, January 4, 2011

What's the difference between a Chequing and a Savings account?

Hey Everyone!

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:

Savings Accounts
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
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! 

Comment below!
The cashsmart Team 


3 comments:

  1. In the case of my bank, there is no difference in the account. Savings accounts offer no interest and can be withdrawn from an unlimited amount of times...

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  2. Thank you for sharing. Online banking should always be free!

    checking Dripping Springs, TX

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  3. Thanks for the clarification. Both are good for the own uses, although for cash I prefer to store it in a chequing account.

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