At Legacy Bank, our team serves customers across the state, with physical locations in Wichita, Colwich, Pratt, and Sedgwick, Kansas, and is dedicated to helping customers select the right checking and savings accounts for their financial goals. Learn more about the differences between checking and savings accounts, and find out why you need both!

What Is a Checking Account?

Checking accounts are offered by almost every bank and are where you will conduct most of your day-to-day financial activities, such as making deposits, using your debit card, transferring money, or withdrawing cash from an ATM. These accounts are easily accessible and help customers manage their daily finances while evaluating where they are spending their money. It’s important to note that different financial institutions offer various types of checking accounts, so be sure to consult with your bank to learn more about the specific terms and conditions for each account. When opening a checking account, you will be provided access to your money through a checkbook or debit card and other optional money management tools such as online or mobile banking.

Benefits

Managing your money is made easy with a checking account! Not only do checking accounts allow you to access your money when you need it, but they also provide customers with various added benefits. These benefits include the following:

• Easily Transfer Funds—With a checking account, you can quickly transfer funds from one account to another, whether a one-time occurrence or recurring transfers between your different accounts.
• Enjoy Online and Mobile Banking—When opening a checking account, you will receive access to your bank’s online or mobile banking service! Not only can online banking help you easily manage your money, but you can gain 24/7 access to your accounts, transfer funds directly from your phone, and browse products and services online. Learn more about Legacy Bank’s online banking services!
• Set Up Automatic Payments–Stay on top of paying your bills on time by setting up automatic payments. Each month, funds will be pulled directly from your account without any additional steps on your end!

What Is a Savings Account?

Unlike traditional checking accounts, savings accounts are intended to save money for extended periods to collect interest. Many customers utilize savings accounts to build emergency funds or save toward a specific goal, such as creating travel, wedding, and college funds. Like checking accounts, savings accounts are also offered by various banks and financial institutions, and you can likely open your savings account at the same institution in which you have your checking account! Because savings accounts are intended to store money for longer periods of time, you should understand that these funds will be made less accessible.

Benefits

Save for the future with a savings account! Aside from simply saving your money, savings accounts offer customers added benefits relating to planning for their future. These added benefits include:

• High Annual Percentage Yields (APY)—Grow your money quicker with a savings account. Because savings accounts typically offer higher interest rates than checking accounts, you will continue to earn interest on your money for the duration you keep your money in your account. Explore Legacy Bank’s checking account interest rates!
• Accessibility—While savings accounts are intended to help you save and grow your money, you will still be able to access your funds easier than with other accounts, such as retirement funds. When you open a savings account, you will likely be provided access to your financial institution’s online banking services to continue managing your money at home.

Checking vs. Savings Accounts

While you may be wondering if a checking or savings account will better suit your financial needs, it’s important to understand that these accounts serve their own distinct purposes. Checking accounts are labeled as “transactional accounts,” meaning there are no transaction limitations, whereas savings accounts are not transactional and have transaction limits before a fee is assessed for excess withdrawals. Our team at Legacy Bank recommends exploring your various account options and opening both a checking account for your daily financial activities and a savings account to grow your money and earn interest on your account. Make the smartest financial decision for you and your family, and capitalize on the benefits of checking and savings accounts today!