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The Benefits of Having Both a Checking and Savings Account

Did you know that having a checking account combined with a savings account is usually better than just having one or the other?

Typically, a checking account is the main account you use to conduct your daily financial activities. This is where you deposit your paychecks or other earnings, and then use those funds to pay bills, write checks, withdraw cash, use the ATM, and make charges on your debit card.

A savings account is a great addition because it allows you to save money that’s not needed in your everyday budget in a separate account, which makes it less likely you’ll dip into those funds. At the same time, it is accruing interest! Interest helps your money grow over time.

While both checking and savings accounts are safe places to keep your money, there are a few main differences between the two accounts:

Interest: A checking account earns little to no interest on your balance, whereas a savings account will offer interest on the funds you deposit into the account, which in turn helps your money grow.

Fees: Many checking accounts will incur small monthly service fees, which typically allow unlimited access to your financial institution’s app and other services. Often these fees can be waived through certain actions, such as setting up a monthly direct deposit or maintaining a certain average daily balance. At NCCFCU, we are committed to helping our members break free from fees! Our checking accounts have very minimal fees!

Transactions: Most checking account products allow you to make unlimited transactions, so you can withdraw $20 here or make a $5.50 debit card payment there. With a savings account, you’re often limited to a specific number of transactions a month, which will encourage you to keep your money there rather than spending it.

Minimum Deposit: A checking account will usually have a specific minimum amount you need to deposit to open the account – at NC Community Credit Union, it’s ONLY $1 with our Essential Checking Account.

Ready to open checking and savings accounts of your own? The specialists at NC Community Credit Union are available to talk about how to make the most of our financial service products, including checking and savings accounts.