If your money isn't under the mattress or buried in a hole in your backyard, it's probably in a checking or savings account. 🏦 These two accounts both keep your money safe and secure, but each has its own specific function. 💵
Before shopping around for new accounts, check out these tips on how to use and choose a checking and savings account for your personal finances. 💰
Here’s Five Fast Facts on checking and savings accounts:
- ✅ Check It Out - Checking accounts allow you to easily deposit and withdraw money, make electronic payments, or write out checks. Use your checking account to take care of daily financial transactions and accept direct deposit paychecks. You can also use the associated debit card to pay for things and make cash withdrawals at an ATM.
- 📋 The Check-List - Look for a checking account with an easy application and sign up process, which in many cases can be started online. Choose one with few or no fees to save the most money. Also look into the overdraft and non-sufficient funds fees. Make sure the account is insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA). They'll cover your money up to $250,000 in a bank failure. Ask your bank if they also protect against fraud and lost or stolen debit cards.
- 🌳 Branching Out - Another factor to consider is how close you are to a local bank branch, in case you ever need to chat in-person about your account. Check to see if the bank has an easy-to-use website and mobile app. Breeze through online reviews of different banks to get a feel for how good (or bad) their customer service is. Bonus points if the bank offers 24/7 support.
- ☂️ Save It for a Rainy Day - Savings accounts are for (...wait for it) saving money. You'll stash funds here that you're putting away for a longer term goal, like a vacation or a new home. You can also keep your emergency fund and rainy-day fund in a savings account.
- 🤠 Baby, I Got Your Money - A high-yield savings account with a high annual percentage yield (APY) is an ideal place to keep your money. A traditional savings account works just fine, too, but a high-yield account will earn you some money while it sits. When choosing a savings account, check the bank's requirements around minimum initial deposit and how often you can make withdrawals. As with checking accounts, savings accounts sometimes have fees associated with them, so do your research.
🔥Bottom line: Today's economy makes us all want to withdraw our cash and keep it with Uncle Jerry's gold bars buried next to his old pet lizards 🦎 (RIP). However, using a checking and savings account is still the best way to manage and safeguard your cash. Wondering if your saving strategy is a bit too hardcore? Read about having more fun with your money here.
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