Have you ever wondered where people keep their money?
Maybe you received a gift from a grandparent or have an allowance. Wouldn't you like to keep that money safe at a real bank rather than in an old shoebox under your bed?
What Are Checking And Savings Accounts?
Most people who keep their money at a bank house it in two types of accounts:
where you keep money for day-to-day spending
your debit card will be connected to your checking account
where you keep your long-term savings for future purchases
money stored in savings earns small amounts of interest each year
Checking accounts allow you to keep your money safe and secure, while savings accounts help you save for the future by making your money grow!
When Should You Use Each Account?
when you need easy access to your money
use your debit card to deposit and withdraw cash from ATMs or make cashless purchases
set up your account to make automatic transfers to your savings account
put away money for long-term goals
access is limited so you don't spend it unless you need to
good for emergency funds and debt repayment
transfer savings funds into your checking account for spending
Which type of purchases should you use your savings account for?
What Should You Consider Before Opening A Checking Or Savings Account?
Minimum balance requirements
You'll need to keep a minimum amount of money in your account to avoid paying the account's monthly fee.
If you spend or withdraw more money than you have in your account, you'll pay a fee.
There might be a daily or monthly limit on how much you can withdraw money or make purchases, so you'll pay a fee if you go over the limit.