Checking vs. Savings: Which Account Vibes with Your Financial Goals?

We’ve got the 411 when it comes to checking vs. savings accounts.

woman shopping after choosing whether a checking or savings account was best

In today's world of digital payments and instant transfers, it's vital to understand the ins and outs of where you stash your cash. You’ve likely heard of the two mainstays in personal finance: checking and savings accounts. But what's the difference? And which one is your money BFF?

Let's do a deep-dive of checking vs. savings accounts right now.

The Purpose (aka Your Money’s Why)

Checking Account: Your go-to cash stash. A personal checking account is designed for frequent transactions like paying bills, buying that must-have pair of sneakers, or splitting the brunch bill with friends. It's all about daily ease and convenience.

Savings Account: Your treasure chest, so to speak. The primary purpose of a savings account is (go figure) saving. Whether you're planning an epic trip or a down payment for your own wheels, a savings account is a place for your money to sit, grow a bit, and get ready for the future.

Interest Rates

Checking Account: Typically, checking accounts have lower interest rates. Sometimes, they don’t earn any interest at all. Your money is accessible, but it's not exactly growing.

Savings Account: Here's where things start looking up. Savings accounts usually offer higher interest rates than checking accounts, meaning your money can grow just by chilling there. Compound interest, anyone? The more your money compounds, the quicker your savings can stack up.


Checking Account: With a debit card, checks, and online access, you can easily tap, swipe, sign or click to pay for things.

Plus, when you open an account with UW Credit Union, you get access to exclusive debit card designs to show off your style.

Savings Account: There’s a reason it’s called a savings account. There might be a limit on how many withdrawals you can make each month, helping you resist the temptation to dip into your savings every time a new shiny object drops.


Checking Account: Some checking accounts have monthly maintenance fees, but these can often be waived with a minimum balance or direct deposits. Make sure you understand the fee structure before opening an account (because nobody likes unexpected costs).

Savings Account: There might be a fee if you withdraw more than the allowed limit or if your balance drops below a certain level. Again, make sure you’re clear on the fee structure before opening an account.

Choose Your Own Adventure

Think about your financial goals and daily needs when deciding whether to open a checking vs. savings account. Want immediate access and frequent transactions? Go checking. Looking to grow your wealth over time? Savings it is. Better yet, why not have both? Balance is key — blending the immediate access of a checking account with the long-term growth of a savings account is the ultimate financial vibe.

Related Articles

Supercharge your budgeting skills to reach your financial goals.

How to Create a Budget (and Stick to It)

Get back to budgeting basics with this guide to help you understand and better manage your money.

Read More
A happy couple smiles together knowing they have achieved financial wellness

What is Financial Wellness?

Financial wellness is achievable at any stage of your life. Read our tips to help you get started.

Read More
A UW Credit union member opens a packaged ordered safely online thanks to these six tips

6 Tips to Shop Online Safely

Protect yourself from scammers with these smart shopping practices.

Read More