What's the Difference Between Checking and Savings Accounts?

For your day-to-day life, the main differences between checking and savings accounts are access to the money and interest. Checking accounts allow quick access to your funds on an ongoing basis, and some checking accounts are interest bearing. Savings accounts usually earn more interest compared to checking accounts and are typically used for a financial goal or specific purpose (vacation, home remodel, etc). Depending on your bank, your savings account may also have withdrawal limits.

There are benefits to checking accounts and savings accounts, but it's beneficial to have both a checking and savings account at the same bank. If you're unsure about whether to open a checking or a savings account, we can help. Both accounts provide ways to store your money and allow you access to the money you have deposited.

What is a checking account?

A checking account is a deposit account that lets you keep your money in a secure place while still allowing you to easily pay for daily expenses. When you use your debit card at a store, the money is typically withdrawn from your checking account. If you use checks, the money is also usually withdrawn from your checking account.

Benefits of a checking account

The benefits of a Huntington checking account include:

• Deposits are FDIC insured, up to insurance limits^†
• Access to funds through:
  • an ATM
  • a teller
  • cashback at a register
  • checks
• No transaction limits as long as your account is in good standing
• Access to Bill Pay online and in our mobile app
• Access to transaction history and statements online
• Access to digital money management tools
• Ability to transfer money to friends and family with Zelle^®¶
• On-demand access to your account balance online, in the mobile app, at an ATM, and through text alerts^¥

When you open a checking account with us, you get access to all these benefits and more. These tools are beneficial when it comes to managing household expenses.

Huntington’s Online Bill Pay, a free resource, can help you schedule and pay your bills. This can save you from handwriting checks, spending money on stamps, and can save you time by letting you pay all your bills on one secure website.

What is a savings account?

A savings account is a smart choice when you want to save money for the future. All savings accounts at Huntington earn interest.

Benefits of a savings account

The benefits of a Huntington savings account include:

• Deposits that are FDIC insured, up to insurance limits
• Interest to earn to grow your personal wealth
• Access to transaction history and statements online
• Access to household budget and digital money management tools
• On-demand access to your account balance online, in the mobile app, at an ATM, and through text alerts

Looking at these at-a-glance lists, you can see how checking accounts and savings accounts are alike: FDIC insured, access to money through ATMs and tellers, and access to online and mobile banking.

It's also easy to see how they're different. For example, savings accounts do not use checks for payments and may be used for putting money aside to reach a savings goal. A Huntington savings account also includes similar benefits as a Huntington checking account giving you access to our digital money management tools in The Hub, both through your online account or mobile app.

Checking and savings accounts serve different purposes. While you may be comparing the benefits of a checking account versus a savings account, it's also helpful to think about how these accounts can work together to help you achieve your financial goals.

Should I keep my checking and savings accounts at the same bank?

At Huntington, there are several advantages to opening both a checking and savings account. Establishing both your savings account and your checking account at the same bank makes it very easy to transfer money between the two. You can also add a savings account to an existing debit card that comes with another demand deposit account. You can have access to both accounts through the same card at the ATM. When the debit card is swiped for a purchase, all purchases would still be debited to the demand deposit account.

Being able to easily transfer money encourages you to save. When you open a savings account, you do so with the best intentions, but life gets busy, or expenses come up. Establishing your checking and savings account lets you set up an automatic savings plan that's easy to grow as your financial situation changes.

Building a savings account can help provide an emergency fund to help yourself in the future in the event of an unexpected expense or job loss. Setting goals can help keep you motivated to save.

Another benefit of having a savings and checking account with Huntington is you can waive Savings account Monthly Maintenance Fees. You could also help avoid Overdraft Fees by establishing your savings account as overdraft protection for your checking account^†. You can also set-up a specific amount for automatic recurring transfers, to help reach your goals.

How to choose what's best for you

Understanding the benefits of having multiple bank accounts is one step, the other is figuring out which account is the best for you. We have banking information available online to help you. We're also available on the phone or in a branch to talk to you about your financial goals and how we can help you achieve them.