As adults, we take on a lot of responsibility for ourselves. Having a stable job, a family and social life and managing our finances. When we first go to the bank to open an account, we are given a choice of savings vs. checking accounts. Which one is better? They both have their functions, and here are some key differences between the two.

Checking Account
A checking account is an account you have at a bank and it helps you in making deposits and withdrawals of money. With a checking account, a person can use either a debit card or a check to deposit or withdraw. Withdrawals can mean anything from taking money out from an ATM using a card and purchasing stuff using your bank card to sending money wirelessly via bank transfer.

Savings Account
A savings account is more focused on depositing money without the intention of paying bills or purchasing things. This is kind of like a safety net that people get and start putting money in it for the future. These accounts can easily be opened at any nearby bank. A savings account may yield you more interest as banks want you to keep your account open.

Account Fees
Every checking account that you open has a certain fee you need to pay for it. For example, the account holder must have a required amount of balance in the account at all times or should make a set number of transactions each month to avoid getting penalties.

Savings accounts, on the other hand, don’t usually have a fee. The only condition is that people should not go past their withdrawal limit set by the bank. However, some banks have more conditions like the account holder needs to have a certain amount in the savings account or should deposit money a particular number of times during a month.

Interest Rates
There is almost a 0% interest rate on checking account. But that depend on the bank and may change accordingly. Savings account, on the other hand always has interest rates. The rate depends on factors like type of savings account and money deposited, but there always are interests that are definitely higher than checking accounts.

Bill Payments
If you have a checking account, you make online payments and transactions. You can transfer money online, set up automatic bill payments that will be debited from your account automatically every month, and pay rent and bills. However, with a savings account, these kinds of transactions are virtually impossible but if you want to, you can transfer money from your savings to checking account.

These are some differences between savings vs. checking accounts. And if you decide to open your first account, you should talk to someone who can advise you on the best kind for you.