• Samantha Waites, Outreach Manager at Emedia buyers


• 14.09.2023 11:30 am
#savings

It’s understandable if you’re stuck between opening a checking or a savings account. After all, both accounts can help you store and manage your money, and each one has its benefits. However, you may have heard how some people open both accounts instead of choosing one. So, it’s natural to ask, “Do I need both a checking account and a savings account? Is it bad to just have one instead of both?” Well, you don’t need to open both accounts if you don’t want to. But, having both a checking account and a savings account can benefit you in more ways than you think! 

First, opening both accounts at the same bank may be advantageous because your banking information can be accessed online or through your phone in one spot. Some banks can waive monthly fees if you link both accounts with them, but you may have to have a minimum balance in each account every month. 

You can also link your savings account to your checking account as a form of overdraft protection for a payment surpassing your balance. It’s worth noting that each account has a different purpose, but they can both be essential in building financial stability. The advantages of a savings account include earning interest on your deposits, which allows your money to grow over time. This can be especially beneficial for long-term savings goals, such as buying a house or saving for retirement. It’s also good to have some savings set aside for sudden unexpected expenses, like emergencies. Having money set aside for such events can help you avoid needing to go into debt with a credit card or a title loan, or other financial instrument.

So, it’s best to have both accounts available than having one or the other. But remember, you don’t need to open two accounts if you don’t want to. Simply weigh your options and choose a bank account that serves your needs better. However, if you open a checking and savings account at your bank, you may have some exclusive benefits to enjoy.

Do I Need Both a Checking Account and a Savings Account to Manage My Money?

No matter which accounts you decide to open, checking and savings accounts can be equally secure. If your bank or credit union is insured by the National Credit Union Association (NCUA) or Federal Deposit Insurance Corporation (FDIC), your money is safe and secure in both accounts. While both checking and savings accounts have their advantages, having both can provide added protection for your money. A checking account is typically used for day-to-day transactions and offers convenient access to your funds through options like debit cards and online bill pay. 

On the other hand, a savings account is designed for long-term saving and earning interest on your deposits. Having both types of accounts can offer a balanced approach to managing your finances. Having a checking account allows you to easily send and receive payments, making it ideal for handling everyday expenses such as bills and groceries.

Are There Any Downsides to Having Both a Checking Account and a Savings Account?

While having a checking and savings account can have advantages, there are some drawbacks to consider. Take a look at two potential downsides of having a checking and savings account simultaneously:

• Fees: If you open a checking and savings account with a bank and credit union that charges monthly fees, it may be expensive to cover both accounts. 

• Cover Minimum Balance Requirements: Be aware that some banks and credit unions require the user to maintain a minimum balance on each account. If you find it difficult to meet that requirement, sticking with only one account may be best.

Keep in mind that the drawbacks of opening both accounts will depend on the institution you decide to open the accounts with. But, if you find a bank or credit union without these fees and balance requirements, it may be easier to maintain a checking and savings account.

Conclusion – Should I Get Both a Checking Account and a Savings Account?

The answer depends on your financial goals. If you want to get the most out of your money, you can consider opening both accounts. But, if you prefer sticking with one account, then choose a bank account that works best for you. Speak with a financial advisor today to see which option fits your financial situation.