When it comes to managing your money, you need a relationship with a financial institution, like a credit union, to keep the funds safe while ensuring access when you need it. You have several account types to choose from, but the most common are checking and savings. Because they serve different purposes, most people have both to help them make the most of their money.
How Checking & Savings Accounts Compare
When you open your checking account, you’ll receive checks and a debit card for making purchases. Most credit unions also offer mobile services, allowing you to pay bills right from your account. Although you can typically access your savings account and make a withdrawal using your debit card, you’ll need to take out cash or transfer money to your checking account to do so.
2. Transaction Limits
Because savings accounts are designed to encourage you to conserve rather than spend, credit unions put limits on the number of withdrawals you can make. In fact, federal law limits savings withdrawals to six per month, and any excess transactions can mean fees or even having the account closed. Checking accounts have no such limits.
Some checking accounts pay a nominal amount of interest on balances, but it rarely amounts to more than a few dollars per year. Savings accounts, on the other hand, pay much higher interest rates, and the more you save, the more you can earn.
Some institutions apply monthly fees to accounts. Credit unions tend to charge lower fees – if they do at all – but you can often avoid these fees by maintaining a minimum balance or opening more than one account. In general, savings account fees are lower than checking ones.
If you are looking for a new credit union or setting up a checking and savings account for the first time, turn to Estacado Federal Credit Union in Hobbs, NM. For more than 65 years, they have helped local residents manage their money with quality products and exceptional customer service. Visit them today to open an account and immediately start enjoying the benefits of a credit union membership. Call (575) 393-1596 to discuss your needs with a friendly representative and visit them online for more information about their accounts.