Checking and saving accounts are the most common bank accounts. Choosing between them depends on these factors like the purpose, access, or other attributes.

Checking and saving accounts are the most common bank accounts. The main difference between checking accounts and saving accounts is the interest rate. Checking accounts earn little or no interest, whereas saving accounts attract more interest.

A checking account is used for daily transactions like purchases, ATMs, and bill withdrawals. Moreover, they normally earn minimal interest or none.

On the other hand, saving account is a type of bank account which is used to store money. It is the account where people keep their money, which they don’t want to spend right away. These accounts have higher interest rates and also help individuals to grow their money.

Comparison Chart

Basis Checking account Savings account
Withdrawal limit None Six withdrawals per month (the user can withdrawal a portion of the money)
Interest-bearing Sometimes (usually minimal) Yes, interests rate may vary
Purpose Spending money Saving money
Fees It depends on the bank differ from one bank to another bank
Access Anytime Limited
Minimum balance required Varies Varies with the bank
Additional features Debit cards, direct deposits, Overdrafts , external online transactions ATM access, direct deposits, Internal online transactions with few banks

What is Checking Account?

A checking account is a tool for spending money, as this is a particularly flexible account in terms of spending. These accounts are also known as transactional accounts, which are used for everyday transactions.

Banks usually anticipate account holders to regularly take out money from the accounts, but they put few restrictions on the timings and amount of the withdrawal.

Accounts Fees

When a person opens a checking account, the bank will need that it meets certain criteria such as they need to maintain a specific amount of money in the account. This amount is known as the minimum balance requirement.

Few banks want their customers to make minimum transactions per month if the account holder fails to follow certain regulations; they are likely to pay monthly maintenance fees.

There are also some other fees which bank can impose on checking accounts holder that includes ATM fees, overdraft protection fees as well as online access fees and the amount of the fees varies from one bank to another.

Interest Rates

Checking accounts earn little or no interest; mostly checking accounts don’t pay interest to account holders. But some bank pays a lower interest rate than saving accounts.


Bill Payments

The checking account holder is able to make an auto bill pay function for frequent payments such as electricity and water bills. He can use the account for the payments.

Debit Cards

A checking account offers debit cards that make easy access to money through ATM and pays for goods. However, debit cards only allow the account holder to use the money which is already in the account.


A checking account holder can make many transactions as he can make and deposits a number of times. Generally, service fees may apply to transactions beyond a particular monthly limit. Such as, the account holder of a checking account will have to pay fees for writing more than 15 checks in a month.

What Is Saving Account?

Saving accounts are basically designed for saving your money while paying interest on your account balance; these accounts mostly pay interests so that the account holder can earn money on the account balance, which he is not using.

Long-Term Investments

Saving accounts are referred to as a form of investment as compared to checking accounts. You are giving bank access to your cash, mostly banks place limitations on the number of withdrawals, and the average number of withdrawals is 3 to 6 in a month. Moreover, there are no limitations to the number of deposits.

Harder To Spend

The money in saving account is hard to spend as compared to checking accounts, as they don’t have check-writing benefits or debit cards, you will need to withdraw or transfer money before you spend it.

Pays Interest

Saving accounts attract more interests; generally, the interest rate differs from one bank to another. To decide the applicable rate, the bank will consider two main things, the type of saving account of an individual and the amount of money deposited in the account.

Account Fees

Saving accounts are mostly less expensive than checking accounts. A saving account has no fees; the only requirement is that the user does not exceed the withdrawal limit, and ATM fees are still a reality.

Key Differences

  1. Saving accounts are used by the account holders who keep their savings to meet their financial requirement in the future, whereas checking accounts are active accounts that are used for day to day mandatory transactions.
  2. Saving accounts are suitable for salaried people for regular savings, whereas checking accounts are suitable for business entities, societies, government departments, and institutions as they have to deal with daily transactions.
  3. Saving accounts offer 4 to 8 % interest to the account holder on their deposits. On the other hand, checking account holders do not earn interest on their deposits.
  4. In the case of saving accounts, there is a restriction on the number of daily transactions, if the transaction limit exceeds the particular limit charges will apply. On the other hand, there is no limit on the number of transactions in the checking accounts.
  5. Bank overdraft facility is provided to current accounts, whereas this facility is not provided to the saving accounts.
  6. The opening balance which is required to open a saving account can be very less, whereas the checking accounts require a high amount as the opening balance in order to open a checking account.

Comparison Video


However, the main difference between the checking account and saving account is the interest. Saving account offers interest on the amount of deposit to their account holders, whereas checking account is a non-interest bearing account, so it doesn’t offer interest to their account holders. Generally, checking accounts are best for spending purpose or day to day transactions whereas saving accounts are designed to save the money to fulfill their future financial requirements.