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What is the Difference Between a Checking and Savings Account?

When it comes to managing finances, choosing between checking* and savings1 accounts can be a pivotal decision. But what exactly is the difference between these two accounts? Let’s walk through some features and advantages of these accounts as you deliberate which aligns best with your financial goals, spending habits, and saving preferences.

What is a checking account?

Checking accounts* allow quick access to your funds on an ongoing basis. When you use your debit card for everyday purchases, the money usually comes from a checking account rather than a savings. Checking accounts are ideal for multiple transactions a week and generally have little to no interest rates.

What are some features in an Academy Bank checking account?

  1. Accessibility: Checking accounts* are your go-to for everyday transactions, facilitating deposits, withdrawals, and seamless management of finances.
  2. Saving Cents: The Saving Cents2 program is a great tool if you have both a checking account and savings account with Academy Bank. With every purchase using your debit card, the total amount is rounded up to the increment of your choice. At the end of the day, the extra charge is deposited into your savings account. It’s a great way to bolster your savings and reach your financial goals faster.
  3. Early Pay: Get your hard-earned money a day early with an Academy Bank checking account.

What is a savings account?

Savings accounts1 are a smart choice when you want to save money for the future. Saving accounts limit the number of transfers, transactions, and withdrawals you can make. Therefore, having day-to-day access isn’t as feasible as it can be with checking accounts.

Great features of an Academy Bank savings account

  1. Interest Accumulation: Savings accounts enable your money to work for you, accruing interest and contributing to your long-term financial stability.
  2. Financial Resilience: Establish a safety net against unforeseen expenses or emergencies, fostering financial resilience and peace of mind.
  3. Consistent Saving: By keeping savings separate from everyday spending, saving accounts instill consistent saving habits and foster financial discipline.

Checking or savings account: which is best for me?

Choosing to open a checking or savings account is a big decision, and what works best for you really comes down to your financial goals and spending habits. If you need to pay for items more than a few times a month, a checking account* may be the best option for you. If you are more focused on growing your money and rarely make withdrawals or transactions, then maybe consider opening a savings account.1

Remember, you aren’t limited to one over the other. Sometimes it’s better to open both checking and savings accounts. That way, you can have one account for everyday expenses and another for growing your funds over time. Having both accounts streamlines fund transfers and grants immediate digital access to all your funds. Have questions? Give your local branch a call. An associate will be happy to assist you in finding the best account for reaching your financial goals. Discover the possibilities that lie ahead with Academy Bank and seize control of your financial future.



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*Opening deposit required. Monthly service charge applies. Closing new accounts within 90 days of opening will result in a $20 early closure fee.

1$25 minimum opening deposit required. $100 minimum balance required to avoid $5 monthly service charge. $5 paper statement fee applies. Closing new accounts within 90 days of opening will result in a $20 closure fee.

2Choose from $1 to $5 increment to round up on your debit card purchases from your checking account. Each night all the extra change will automatically transfer from your checking to your savings.