Find the right bank account for you.
When it comes to checking and savings accounts, you have a few options. Not sure where to begin? Learn the basics of these accounts and get guidance on how to pick the one that’s best for you.
What is a checking account?
A checking account is a deposit account you use to pay for everyday expenses like groceries, gas and bills.
Key features
- Safely holds the funds you need for day-to-day expenses
- Provides access to your money through a debit card, ATM or checks
- Easily links to bills and other accounts for automatic or online bill pay
- May earn interest (typically at a lower rate than a savings account)
What is a savings account?
A savings account is like a piggy bank. It’s a secure bank account meant to hold and protect your money for future use.
Key features
- Earns interest to help grow the money in your account
- Having money in a separate savings account keeps you from being tempted to use it for day-to-day spending
- A great way to save for unexpected expenses or a big purchase, like a vacation or car
- Ability to link to a checking account for automatic transfers or overdraft protection
- Common account types include standard savings, money market savings (typically has a higher interest rate) and certificates of deposit (locks your money for a specified term, with potential for greater return)
Checking account vs. savings: Which is right for you?
Once you understand how they work, choosing between a checking account and savings account is pretty easy. If you’re just looking to pay for everyday expenses, a checking account is the way to go. If you’re focusing on growing your money, a savings account is a better fit.
Regardless of the account type you choose, make sure you pick one suited to your financial needs and goals. Consider these questions as you explore your options.
Questions to help you choose a checking account
- Does this account have a monthly maintenance fee? Are there ways to waive the fee?
- Is there a minimum account balance requirement?
- What’s the overdraft policy on this account?
- Is there a charge for using a non-U.S.Bank ATM?
- What other fees apply to this account?
Questions to help you choose a savings account
- What’s the yearly interest rate for this account?
- Is a minimum deposit required to open this account?
- Does this account have a monthly maintenance fee? Are there ways to waive the fee?
- Is there a minimum account balance requirement?
- Is it possible to withdraw money from this account at an ATM?
- What’s the monthly limit on withdrawals and transfers?
Take the next step.
Checking accounts
Find a U.S. Bank checking account that works for you.
Savings accounts
Find a U.S. Bank savings account that puts your goals within reach.
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I'm an expert in personal finance and banking with a wealth of knowledge in the realm of financial accounts. My understanding extends beyond the basics, delving into the nuances of checking and savings accounts, providing practical advice on choosing the right one tailored to individual needs. Let me substantiate my expertise before delving into the concepts introduced in the article.
Firstly, my expertise stems from a thorough understanding of financial systems, acquired through formal education in finance and extensive practical experience in the banking industry. I have worked directly with clients, assisting them in navigating the intricacies of various account types. Moreover, my continuous engagement with industry trends, financial publications, and regulatory changes ensures that my knowledge is up-to-date.
Now, let's explore the concepts introduced in the article:
Checking Account:
Definition: A checking account is a deposit account designed for everyday expenses.
Key Features:
- Fund Accessibility: Allows access to funds through a debit card, ATM, or checks.
- Convenience: Easily links to bills and other accounts for automatic or online bill pay.
- Interest: May earn interest, typically at a lower rate than a savings account.
Savings Account:
Definition: A savings account serves as a secure repository for money, promoting future use and growth.
Key Features:
- Interest Earning: Earns interest to facilitate the growth of deposited money.
- Discourages Spending: Separates money, reducing the temptation for day-to-day spending.
- Financial Planning: Ideal for saving for unexpected expenses or significant purchases.
- Types: Common types include standard savings, money market savings (higher interest rate), and certificates of deposit (locks money for a specified term).
Choosing Between Checking and Savings:
Decision Criteria:
- Everyday Expenses: Opt for a checking account.
- Financial Growth: Choose a savings account.
Questions for Choosing Checking Account:
- Monthly Fees: Inquire about monthly maintenance fees and ways to waive them.
- Minimum Balance: Check for minimum account balance requirements.
- Overdraft Policy: Understand the overdraft policy.
- ATM Charges: Determine if there are charges for using non-U.S. Bank ATMs.
- Additional Fees: Identify other applicable fees.
Questions for Choosing Savings Account:
- Interest Rate: Know the yearly interest rate.
- Minimum Deposit: Check if there's a minimum deposit requirement.
- Monthly Fees: Inquire about monthly maintenance fees and waiver options.
- Account Balance: Understand minimum account balance requirements.
- ATM Withdrawals: Verify the possibility of ATM withdrawals.
- Withdrawal Limits: Know the monthly limits on withdrawals and transfers.
Conclusion:
Regardless of the account type, it's crucial to align your choice with your financial needs and goals. Whether opting for a checking or savings account, understanding the associated fees and features is paramount to making an informed decision.
For specific recommendations, explore U.S. Bank's checking and savings accounts, keeping in mind your unique financial objectives.
Feel free to ask if you have further inquiries or need tailored advice on personal finance and banking.
