The easiest way to tell whether your account is a checking or savings account is to look at how your account is labeled online or in your mobile app. You can also check your bank statements or other account documents.
Checking vs. savings account: Which one is right for you
Understand the difference and pick the one that is best for you
Whether you need a checking account or a savings account depends on your financial goals. Checking accounts are typically used for money you need to access easily, while savings accounts are meant for money you want to set aside for the future.
Learn more about the basics of each type of account so you can pick the one that’s best for you.
On this page
|
Type of account |
Purpose |
Best for |
Access to funds |
Interest |
|---|---|---|---|---|
|
Checking account |
Everyday spending |
|
As needed through checks, debit card, and ACH |
Usually low or none |
|
Savings account |
Setting money aside for future goals |
|
May have transaction limits |
More likely to earn interest |
Type of account
Checking account
Purpose
Everyday spending
Best for
- Paying bills
- Debit card purchases
- Direct deposit
- Cash withdrawals
Access to funds
As needed through checks, debit card, and ACH
Interest
Usually low or none
Type of account
Savings account
Purpose
Setting money aside for future goals
Best for
- Building an emergency fund
- Saving for short, or long-term goals
Access to funds
May have transaction limits
Interest
More likely to earn interest
Once you understand how they work, choosing between a checking vs. savings account is pretty easy. If you’re just looking to pay for everyday expenses, a checking account is the way to go. If you’re focusing on growing your money, a savings account is a better fit.
Regardless of the account type you choose, make sure you pick one suited to your financial needs and goals. Consider these questions as you explore your options.
Questions to help you choose a checking account
Before opening a checking account, consider asking yourself:
- Does the account have a monthly maintenance fee, and how can you waive it?
- Is there a minimum balance requirement?
- What is the overdraft policy, and are there associated fees?
- Are there fees for using out of network or non-U.S. Bank ATMs?
- What other fees could apply to everyday transactions?
Questions to help you choose a savings account
When evaluating a savings account, it’s helpful to know:
- What is the annual percentage yield (APY) for this account?
- Is a minimum deposit required to open the account?
- Is there a monthly maintenance fee, and how can the fee be avoided?
- Is there a minimum balance requirement?
- Can you withdraw money at an ATM, if needed?
- What are the monthly limits on withdrawals or transfers?
A debit card is typically linked to a checking account, not a savings account. Debit cards are designed for frequent spending and direct access to funds, which is what checking accounts are built for. At most banks, a debit card usually comes with a checking account.
Yes, you can make account-to-account money transfers. You can transfer money from one U.S. Bank account to the other at no cost, and the transaction posts right away. You can also transfer money from other financial institutions into your U.S. Bank account (checking or savings). This type of transfer takes a few business days and may incur a fee.
You can use your savings account as a checking account, but it might not be the best option. Savings accounts are meant for money you want to set aside for the future, not for everyday spending. Because of that, they may come with limits on certain transactions or fees if you exceed those limits.
In most cases, savings accounts earn more interest than checking accounts. Savings accounts are designed to help your money grow over time, while checking accounts prioritize easy access and spending. Interest rates vary by bank and account type, so it’s important to compare options.
Savings accounts are not designed for frequent bill payments. While you may be able to transfer money from savings to checking, most bills and everyday transactions are paid from a checking account. Using a checking account for bills helps avoid withdrawal limits that may apply to savings accounts.
Some people open multiple accounts for various reasons. Here are a few of the more common ones:
- Budgeting with separate “buckets” (bills, emergencies, travel, or major purchases)
- Taking advantage of high-yield savings rates
- Maximizing FDIC insurance - each bank insures up to $250,000 per depositor, per ownership, per institution. Learn more about how FDIC insurance works
U.S. Bank allows you to open more than one checking or savings account, if you meet the requirements. For more information, call us at 1-800-872-2657 visit a U.S. Bank branch or schedule an in-person or online appointment with a banker.
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