HONG KONG – January 14, 2022 – (Newswire.com)
iQuanti: Managing Money Effectively can help in many ways. You can streamline spending, save smart, and do more. To manage money effectively, one can choose to open a checking account or a savings account.
A checking account can be ideal for those who want to make day-to-day expenses, pay bills, transfer funds, etc. conveniently. A savings account can be beneficial for someone who wants to save money over a longer period of time to meet various needs. While both types of accounts can help organize their finances better, there are differences in functionality between the two.
Differences between checking account and savings account
To know the difference between a checking account and savings account in detail, check the points below:
Current account: A current account is a type of bank account that one can open to manage current expenses. Such an account is ideal for meeting frequent spending needs. If one wants to save money for future use, opening a checking account may not prove to be a beneficial option as it is specially designed to make payments for daily needs.
Savings account: A savings account is a type of bank account that one can open to save money for emergencies or for the future to meet large capital needs. If a person wishes to accumulate additional funds for various needs or emergencies, it may be useful to apply for a savings account.
Current account: Since there is no withdrawal limit in a checking account and one has the freedom to withdraw funds frequently, the interest rate offered is lower. Also, not all banks can offer interest for a current account.
Savings account: A savings account is an interest-bearing account. However, the interest rate offered in a savings account is higher than that of a checking account.
Current account: A current account has no cash withdrawal limit. This allows funds to be withdrawn frequently and according to one’s requirements and needs.
Savings account: A savings account only allows a specific number of free ATM withdrawals per month. The number of withdrawals may vary from bank to bank.
Differences between a checking account and a savings account
|Current account||Savings account|
|Ideal for daily expenses||Great for saving|
|Has no withdrawal limit||Comes with a withdrawal limit|
|May offer a lower or zero interest rate||Offers a relatively high interest rate|
To manage and streamline day-to-day expenses and save money for emergencies or any other need, one can choose to open both a checking account and savings account. However, this entirely depends on how the individual wants to use their money and better organize it to align with the financial goals they have. One can choose to open both types of accounts in a bank such as Citibank. To know more about the types of accounts, one can check the official websites of the banks where he wants to apply for the account.
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