Both are deposit accounts that hold your money at a bank or credit union
A checking account and a savings account are both deposit accounts — meaning you put money in, the bank holds it, and you can take it out. Both are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per account holder per bank, so your money is protected if the bank fails. Both require you to open an account with personal information, and both show your balance and transaction history.
The core similarity is that neither account charges you to exist. You can open either one with no monthly fee at most banks and credit unions, though some institutions charge maintenance fees if you don't meet a minimum balance or don't set up direct deposit. Both accounts come with a debit card or the ability to withdraw cash, and both let you link to other accounts for transfers.
Key Takeaways
- Checking and savings accounts are both FDIC-insured deposit accounts that protect your money up to $250,000 per account holder per bank.
- Both accounts typically have no monthly fee at most banks and credit unions, though some charge fees if you fall below a minimum balance.
- Both accounts give you access to your money through debit cards, ATMs, online transfers, and in-person withdrawals at the bank.
- Both accounts report to your bank record, which lenders and employers may review, so overdrafts or closed accounts can affect your financial history.
Both require identification and personal information to open
To open either account, you'll need to provide your name, address, Social Security number, and a government-issued ID. The bank verifies this information against databases to confirm your identity and check for fraud. Both accounts also pull your ChexSystems report — a banking history record that shows whether you've had accounts closed for overdrafts or fraud at other banks.
If you have a negative ChexSystems record, you may be denied a checking or savings account at most mainstream banks. Some banks and credit unions specialize in second-chance accounts for people with banking history issues, but the application process is the same: you provide ID and personal details, and the bank decides whether to open the account.
Both let you access your money through multiple methods
Whether you have a checking or savings account, you can withdraw cash at an ATM, transfer money online to another account, or visit the bank in person to withdraw. Both accounts come with online banking access so you can check your balance and see transactions anytime. Both let you set up automatic transfers to pay bills or move money between accounts.
The difference in access is one of frequency and purpose: checking accounts are designed for regular spending, so they typically come with a debit card and unlimited transactions. Savings accounts historically had limits on how many times per month you could withdraw, though most banks have removed those limits in recent years. But the tools themselves — ATM, online transfer, in-person withdrawal — work the same way for both.
Both accounts show up on your banking history
When you open a checking or savings account, the bank reports it to ChexSystems. If you overdraw the account, close it with a negative balance, or commit fraud, that information stays on your ChexSystems record for up to five years. Future banks will see this record when you try to open a new account, and it can disqualify you from mainstream banking.
Employers and landlords sometimes request your banking history as part of a background check, so a closed account or repeated overdrafts can affect your job prospects or housing. This is true whether the account was a checking or savings account — both carry the same weight on your record.
Both accounts earn little to no interest
Most checking accounts pay zero interest on your balance. Some banks offer checking accounts with interest, but the rate is typically 0.01% to 0.05% per year — meaning you earn a few cents on a thousand dollars. Savings accounts traditionally paid higher interest than checking, but at most mainstream banks, savings account rates are also very low: 0.01% to 0.05% annually.
Online banks and credit unions sometimes offer higher rates — 4% to 5% on savings accounts — but these are exceptions, not the standard. The point is that neither account is a way to grow money through interest. Both are designed to hold money safely, not to invest it.
Both require you to keep track of your balance
With a checking account, you need to track your balance so you don't overdraft — spend more than you have. With a savings account, you track your balance to know how much you've saved and whether you're meeting your savings goal. Both accounts show your balance online and in statements, but the responsibility to monitor it is yours.
If you overdraft a checking account, the bank charges an overdraft fee (typically $25 to $35 per transaction). If you overdraft a savings account, the same fee applies. Some banks offer overdraft protection, which links your checking and savings accounts so that if you overdraft checking, money automatically transfers from savings to cover it — but this only works if you have money in savings and the bank offers the service.
Both can be closed by you or the bank
You can close a checking or savings account anytime by contacting the bank. You'll need to withdraw any remaining balance or let the bank send you a check. If you close an account with a negative balance, you owe the bank that money, and the closure will show on your ChexSystems record.
Banks can also close your account without your permission if you violate their terms — repeated overdrafts, suspicious activity, or fraud. A closed account stays on your ChexSystems record for five years, making it harder to open accounts at other banks. This applies equally to checking and savings accounts.
Frequently Asked Questions
Can I have both a checking and savings account at the same bank?
Yes. Most banks encourage you to have both. You can link them so money transfers between them easily, and overdraft protection can pull from savings to cover checking overdrafts. Having both at the same bank also simplifies your banking — one login, one statement, one customer service contact.
Do checking and savings accounts have the same FDIC protection?
Yes. Both are covered by FDIC insurance up to $250,000 per account holder per bank. If you have both a checking and savings account at the same bank, the $250,000 limit applies to your combined balance across both accounts, not $250,000 per account.
Will opening a savings account hurt my credit score?
No. Neither checking nor savings accounts affect your credit score. Banks check ChexSystems, not your credit report, when you open a deposit account. Credit scores only change when you borrow money — through credit cards, loans, or lines of credit.
What happens if I overdraft both my checking and savings account?
You'll owe the bank the negative balance plus overdraft fees for each account. The bank may freeze both accounts until you pay what you owe. The overdraft will show on your ChexSystems record and can prevent you from opening accounts elsewhere for five years.
Can a bank close my savings account if I don't use it?
Some banks close inactive accounts after a set period — typically six months to a year with no deposits or withdrawals. The bank will try to contact you before closing it. If there's money in the account, they'll hold it and you can reclaim it, but the closure shows on your ChexSystems record.