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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.

2-minute read

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 unlimited transactions with no penalties or 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. The limit on transfers keeps down costs, which allows us to offer higher dividends on savings accounts compared to checking accounts. This is why 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 unlimited transactions from your available balance with no fees.  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 reading

Building and maintaining good credit can improve your eligibility for credit cards. Learn five tips for positively influencing your creditworthiness.

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