Checking and Savings Accounts

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A checking account is an account with a bank that allows the person holding the account to make deposits and regular withdrawals. Simply, a checking account provides you with access to your money at ATMs and whenever you need it.  Checking accounts will typically allow direct deposit which enable your employer to pay you directly or Electronic Fund Transfers (ETF), which allow you to transfer money electronically.

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Make sure that you keep in mind fees, which some banks may charge for not meeting set minimums, writing too many checks, or for other reasons.

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A savings account, is similar to a checking account, but often has limits relate to how many transactions or withdrawals can occur per month, the minimum balance, and may not have the ability to write checks.  Savings accounts, however, often provide interest payments to account holders.

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Finally, it is important that your account - whether it a checking or savings account - is FDIC insured. FDIC insurance covers up to "$250,000 per person, per bank, per ownership category" (source).

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