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4 thoughts to “What’s the Difference Between Savings and Checking Accounts, and How Should I Be Using Them?”

  1. King BGR NERD chiming in here with my recommendation: Marcus by Goldman Sachs. Yes, they’re online-only. But they’ve consistently paid one of the highest rates for online savings and they’ve rolled out some No-Penalty CDs lately as well. Since I knew rates were a-dropping, I locked in some 11-month CDs with slightly higher rates (2.0 and 1.9%) before they fell to 1.3% as of today. And they finally have an APP instead of logging in through a freaking browser. We outta the 90s! 🙂

  2. You guys still have positive interest rates? Because in some years in Europe we had negative interest rates, where you would actually pay the bank money for having the money sit around at the bank if you were to not use it quickly enough.

    1. I think it might differ country to country. I’m in the UK, and I haven’t had a negative interest rate yet, though once in a while, there will be a newspaper article about how They Are Coming.

  3. There are even much higher interest rates available! I keep all my cash savings in a high-yield checking account (3%). A number of credit unions and banks nationally have high-yield accounts available and allow for online applications from people living in different states. Doctor of Credit and other websites compile and report on these offers. The only catch is that these accounts often have simple activity requirements (like a certain number of debit card transactions per month). By design that makes them inconvenient if you just want to stash money there and leave it alone, but the requirements are not hard to meet if that’s your primary checking account.

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