Checking and savings accounts are popular options that can keep your money safe. They’re both deposit accounts protected by federal insurance, but savings accounts are meant to hold money to accrue interest, and checking is for spending.
Checking accounts are designed for everyday spending. They come with a debit card and offer a convenient way to make purchases, withdraw cash, transfer funds and deposit money. They offer ATM access through the debit card and don’t have transaction limits.
Savings accounts provide a safe place to store your money while earning an annual percentage yield (APY), which means your balance passively earns interest. Most savings accounts limit you to up to six transactions per month, even though the Federal Reserve’s Regulation D has been suspended. Some savings accounts offer an ATM card, but it’s not very common.
| Checking | Savings | |
|---|---|---|
| Best for | Spending | Saving |
| Interest | Sometimes, average rate 0.08% | Yes, average rate 0.45% |
| Debit card | Yes | No |
| Checkwriting | Yes | No |
| ATM access | Yes | Sometimes |
| FDIC insurance | Yes | Yes |
| Minimum deposit | Typically between $0 and $100+ | Typically between $0 and $500+ |
| Transaction limits | No | Yes, typically up to 6 per month |
| Common fees |
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Checking accounts are meant for frequent transactions and everyday use. Savings accounts are more restrictive but let you passively earn on your balance.
Pick a checking account if …
Pick a savings account if …
If you’re not sure which to choose, there are also hybrid accounts, like the SoFi Checking and Savings account, which is a checking and savings account in one. A money market account is another option to consider. They earn interest like a savings account but come with a debit card and checkwriting privileges like a checking account.
Checking and savings accounts are both safe as long as the bank or credit union is federally insured through the FDIC or NCUA. This federal insurance protects deposit accounts up to $250,000 if your bank fails or goes bankrupt. This insurance is per account holder — not $250,000 for each account you have with the same bank.
However, a checking account may be more vulnerable to fraudulent activity because it comes with a debit card. A thief can steal your card information and withdraw funds or rack up unauthorized purchases. That’s why it’s considered best practice to keep just one or two months’ worth of expenses in a checking account and the rest in savings.
Opening both accounts with the same institution offers convenience, but it may not be the best idea for everyone.
Checking accounts are made for everyday use, so comparing their fees and functionality is key in choosing the right one.
The number one factor in choosing a savings account is how much it can earn over time.
Use the tab to narrow down top checking and savings accounts by fees, opening deposits and APY. Select Compare box on up to four providers to see features side by side.
Open a checking account to get easy access to your money or a savings account to earn interest and limit spending — or open both to cover all your financial bases.
Apple’s new savings account has a high APY and simple set up, rivaling top competitors.
The Ponce Bank high-yield money market account offers 5.28% APY and comes with no account fee and a low $1 minimum opening deposit.
Chime’s savings account has a solid APY and is free but requires a Chime checking account.
Here’s how we rate popular savings accounts, covering what we look for in interest rates, fees, minimums, customer service and account features.
Top-rated savings accounts to save for a Disney vacation.
The banks that offer the best vacation and travel savings accounts are SoFi, Upgrade, Bread, Bask, Varo, Marcus, Barclays and more.
If you struggle to save, you could benefit from a savings account or CD that won’t allow you to withdraw funds.
A compound interest account reinvests your earned interest into your balance. This new balance then continues to earn interest, knowing as compounding.
How to choose the best savings account for your situation.
Some of the top banks with the highest interest rates are Customers Bank, TAB Bank, Cloud, UFB, Bread, Bask, Upgrade, Varo and more.