Checking vs Savings Accounts: What's the Difference?

When it comes to managing your finances effectively, the choice between checking^* and savings accounts¹ holds significant weight. Armed Forces Bank offers distinct features and benefits with each account type. With military banking in mind, we have tailored our accounts to meet the diverse financial needs of our clients. Let’s delve into the intricacies of checking and savings accounts to help you navigate towards your financial goals with confidence.

What are checking accounts?

Checking accounts^* serve as your financial hub for day-to-day transactions, providing convenient access to your funds whenever needed, whether through card payments or check withdrawals. Checking accounts usually have little to no interest or minimal interest rates. They typically have low monthly fees for those accounts, making it ideal for paying bills and making everyday purchases.

Key features of Armed Forces Bank checking accounts:

1) Early Pay: Gain access to your earnings one day early with an Armed Forces Bank checking account.

2) Saving Cents: Opt into the Saving Cents² program to effortlessly bolster your savings by rounding up debit card purchases.

3) Accessibility: Enjoy the convenience of making deposits, withdrawals, and managing your finances seamlessly.

What are savings accounts?

Savings accounts¹ offer a haven for your funds, allowing you to save for the future while earning interest and building resilience against unforeseen expenses. Savings accounts are not meant for everyday purchases and will only allow a limited number of withdrawals a month. They typically have higher interest rates than checking accounts. This means if you don’t withdraw any money from your account, the interest rate will yield more money at a quicker rate. Unlike checking accounts, savings accounts usually have a higher minimum balance and more fees associated with falling below the required balance.

Benefits of Armed Forces Bank savings accounts:

1. Disciplined Saving: By separating savings from everyday spending, savings accounts instill healthy saving habits and help accomplish financial goals.
2. Financial Resilience: Build a safety net for unexpected financial challenges, ensuring peace of mind and stability.
3. Interest Accumulation: Watch your savings grow over time with accrued interest, contributing to your long term-financial stability.

Should I choose a checking account or a savings account?

Determining the ideal account type hinges on your unique financial objectives and spending patterns. If you find yourself making frequent transactions, a checking account^* may suit your needs best. On the other hand, if you’re focused on nurturing your savings and building financial security, a savings account¹ offers the opportunity for growth and stability.

Another option is opening both checking and savings accounts to strike a balance between managing your everyday expenses and fostering long-term financial health. Reach out to your local Armed Forces Bank branch for personalized guidance and support in selecting the account that aligns with your financial aspirations. Embark on your financial journey with confidence, armed with the comprehensive banking solutions and unwavering support of Armed Forces Bank. Take control of your financial future and explore the possibilities today!

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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.