Checking vs. savings account: What’s the difference?

A checking account is generally used for everyday spending and payments. A savings account is generally used for money you want to set aside for a goal, an emergency or a future need.

Both account types can play a different role in managing your money. Understanding how checking and savings accounts differ can help you decide how to use each one and what account details to compare.

Key takeaways

• A checking account is generally designed for frequent spending and payments.
• A savings account is generally designed for money you plan to set aside over time.
• Savings accounts often earn interest. Some checking accounts may also earn interest. Terms vary by account.
• Having both accounts may help you separate everyday spending from money set aside for savings.
• The FDIC lists checking accounts and savings accounts among the deposit products it insures. Coverage depends on the account ownership category and other factors.

What is a checking account?

A checking account is generally used to manage day-to-day spending and payments. Depending on the account, you may use it to receive deposits, make purchases, pay bills, withdraw cash or move money.

Common ways to access money in a checking account may include:

• Using a debit card
• Withdrawing cash at an ATM
• Writing checks
• Making transfers
• Paying bills online

Fees, requirements and available features vary by account. Review the account terms before choosing an account.

Learn more about the benefits of a checking account.

Compare Regions checking accounts

What is a savings account?

A savings account is generally used to hold money you do not plan to spend regularly. You may use a savings account to build an emergency fund, save for a planned expense or work toward another financial goal. Keeping savings separate from everyday spending may also make it easier to see progress toward a goal.

Savings accounts often earn interest, although rates and terms vary by account. Because they are intended for saving rather than daily transactions, some savings accounts may limit certain withdrawals or transfers. Review the account terms before opening or using an account.

If you are setting money aside for unexpected expenses, read about how to build an emergency fund. For information about moving money between accounts, review transfer limits.

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Checking vs. savings account at a glance

The main difference between a checking account and a savings account is how the money is commonly used. Checking accounts are generally for frequent spending and payments, while savings accounts are generally for money set aside for future needs.

Should you have both a checking and a savings account?

Many people use both a checking account and a savings account because the accounts can serve different purposes. Keeping everyday spending money in checking and money set aside for a goal in savings may make it easier to manage each purpose separately.

“The value of having both accounts isn’t just access to different banking features,” said Autumn Voigt, manager of the Deposit Products Group at Regions. “It’s creating a clear purpose for the money you use today and the money you’re setting aside for tomorrow.”

You may be able to move money between a checking account and a savings account. With Regions Online Banking or the Regions Mobile app¹, you can set up recurring transfers between your Regions checking and savings accounts on a schedule such as weekly, every two weeks, monthly or quarterly.

Setting up automatic transfers can help you build a savings habit without having to remember to move money manually. Even small, regular deposits can add up over time and may help you work toward goals such as building an emergency fund or saving for a major purchase.

If you need an account for regular purchases, bill payments and deposits, a checking account may be a good place to start. If your priority is setting aside money you do not plan to use regularly, opening a savings account alongside your checking account may be worth considering. Review account fees, access, digital tools and terms before making a decision.

You can also read about how much money to keep in your checking account or how to choose the right bank account to further help your decision-making process.

Use the savings goal calculator to explore a potential savings plan.

Are checking and savings accounts FDIC insured?

The FDIC lists checking accounts and savings accounts among the financial products it insures if the bank where it is deposited is FDIC insured. Deposit insurance coverage depends on factors including the account ownership category, so review the FDIC’s information for details that apply to your situation and make sure your bank is FDIC insured. To check whether a bank is FDIC-insured, you can search for it with the FDIC’s BankFind tool.

Learn more about what the FDIC is and what it does, or visit the FDIC’s deposit insurance information.

Other bank account types to know

A money market account is another type of deposit account that may have different features and terms than a checking account. Learn more about money market vs. checking accounts to help decide whether a money market may be right for you.

A certificate of deposit, or CD, is another account type to consider when exploring savings options. Read about how CDs compare with savings accounts.

Take the next step

Review account details and terms to decide which option fits how you plan to manage your money.

Connect with a Regions banker near you to explore account options, digital tools and create a personalized Regions Greenprint® plan around your financial goals to build confidence with money.

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