Checking vs savings accounts
Checking and savings are types of deposit accounts that each offer unique benefits. Because each is best for specific financial needs, it is important to understand their differences. Learn which account is best for your lifestyle and goals.
What is the difference between a checking account and a savings account?
A checking account is intended to be your account for everyday purchases and monthly payments. From your available checking balance, you can make transactions with no penalties and no excessive transaction fees.
A savings account can be used as an emergency fund, a place to save up for a specific goal, or to build your assets. You can only make six free transfers per month from your savings account. Your savings account is a great place to keep money you do not plan on spending soon, and have it grow over time.
More key differences between UNFCU checking accounts and savings accounts
| Checking | Savings | |
|---|---|---|
| How many transactions can you make? | You can make an unlimited number of transactions from your available balance. Certain transactions may have fees and/or limits. | You can only make six free1 transfers per month. |
| What does it help you do? | • Make everyday purchases • Pay monthly bills • Transfer money to trusted contacts |
• Save for a goal • Maintain an emergency fund • Build wealth |
| Is the account insured? | The combined total of your UNFCU deposit accounts are insured by the NCUA up to $250,000 per account holder. | The combined total of your UNFCU deposit accounts are insured by the NCUA up to $250,000 per account holder. |
| Can I earn rewards? | Your balance can help you qualify for Member Loyalty Rewards. | Your balance can help you qualify for Member Loyalty Rewards. |
Further learning
Learn more about why a high-yield savings account is ideal for your emergency fund.
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