What is the difference between a savings and a checking account?
I just got my first paycheck! And i have no clue as to what the difference between a savings and a checking account are. I want to be able to save some money for college, but I also want a debit card for my now expenses.
What do you guys suggest? I’m 16 saving for college and my first car. And do you guys know any good banks lol?
A saving account is an account used to accumulate (save) money. They usually have a minimum balance and some, like Money Market accounts, have limits on how many withdrawals can be made in a calendar quarter. Savings accounts pay more interest than checking accounts.
A checking account is intended to pay bills. You can write checks or use a debit card. Checking accounts don’t pay any interest to speak of. Any interest on these accounts is a joke.
Since you live at home and are probably a dependent, I would save the majority (80%) of what you earn and use the rest (20%) for expenses. College is only a couple of years away, you need to save every penny you can!