When it comes to saving for a rainy day and having access to funds for bills, it helps to strike a realistic balance. Opening a savings and checking account can help manage both financial obligations. They both have important features and differences that are designed to accommodate short- and long-term goals.

Checking

A standard checking account offers a variety of uses for everyday transactions. The main features are the ability to make deposits and withdrawals. Account holders are generally required to open one with a certain dollar amount. Checking accounts are also ideal for other services, such as the direct deposit of employee paychecks.

Most accounts do not earn much interest. Depending on the type, some fees are waived if the owner maintains a minimum amount of funds in the account. Some types even have overdraft protection, which transfers funds from another account so that checks won’t bounce. The accounts can also be used to make convenient bill payments online.

Savings

From a home’s down payment to college expenses, savings accounts are designed for long-term financial goals. The accounts provide interest rates to help grow savings. Users can arrange to schedule automatic deposits from their checking accounts to boost the balance even more.

Banks generally require a small amount of cash to open a savings account. Depending on the type, the owner might need to maintain a certain amount in the account. Because savings accounts are designed to grow funds and not be used for everyday expenses, there are some limitations. Only six withdrawals are usually allowed per month, according to Regulation D, which is a set of bank compliance rules.

Paying everyday expenses and savings for emergencies are possible with the right financial tools. Savings and checking accounts are designed to accommodate a wide range of transactions. Putnam 1st Mercantile Bank in Cookeville, TN, is your trusted source for all of your banking needs. The community bank offers a variety of account options with attractive features, competitive rates, and online banking. To learn more about the complete suite of options, visit their website. If you have questions about any of their products and services, call (931) 528-6372 to speak with a friendly representative.