The two most popular types of personal banking accounts are checking and savings. Since both options fall into the same category, you may believe you should only choose one type of account, but many individuals have at least one of each. Each one has benefits and limitations, so choosing to utilize both can offer many advantages.

Personal Banking: What's the Difference Between Checking & Saving Accounts?

Checking accounts are designed to allow you to access your money as often as you want. You can complete these withdrawals in person, by check, or with your debit card, so you never have to worry about losing access to your finances. Such convenience is helpful for day-to-day expenses, but it doesn't offer the restrictions needed to grow long-term savings.

A savings account, on the other hand, is designed as a safe place for your money in the long run. One of the biggest benefits is the interest your money accrues on a regular basis. In some instances, the rate will change with the market, while other banks will set a non-changing percentage for growth. While you can access the money in your checking account at any time, savings accounts typically are associated with a withdrawal limitation, and accessing your account more than is allowed can result in fees.

The differences may be notable, but there are also some similarities between the two options. Depending on the bank, many personal banking accounts require a minimum balance to avoid a service charge at the end of the statement period. You can also expect overdraft charges for both your savings and checking accounts if you try to withdraw more than you have available.

If you're ready to open a new banking account, Citizens Bank is standing by. Since 1919, the local bank has striven to meet the financial needs of Byhalia, MS, and areas of Tennessee. From mortgages to personal banking, the team offers the variety of choices usually reserved for large institutions with the friendliness and personal approach only a small business can offer. Learn more about their checking and saving options online or by calling (662) 838-2146.