Banks do offer both checking and savings accounts
Yes. Nearly every bank in the United States offers both checking accounts and savings accounts as separate products. A checking account is built for frequent transactions — you write checks, use a debit card, set up automatic bill payments, and move money in and out regularly. A savings account is built to hold money and earn interest; you typically make fewer withdrawals and the bank pays you a small percentage return on your balance.
Most banks let you open both at the same time, link them together, and manage them through the same login. Some banks charge a monthly fee for checking, some charge a fee for savings, and some charge neither — it depends on the bank and the account type you choose. You do not have to use the same bank for both; you can keep your checking account at one bank and your savings account at another if that works better for your situation.
Key Takeaways
- Checking accounts are for regular spending and bill payments; savings accounts are for storing money and earning interest.
- Most banks offer both account types and let you link them together under one login.
- Monthly fees vary by bank and account type — some accounts have no monthly fee at all.
- You can open a checking account and a savings account at different banks if you prefer.
- Banks are required to disclose their fees and interest rates upfront before you open an account.
What checking accounts are designed to do
A checking account is meant for money you spend regularly. You can write checks, use a debit card at stores and online, set up automatic payments to pay bills, and transfer money to other people. Most checking accounts come with a checkbook, a debit card, and online banking access so you can check your balance and move money anytime.
Checking accounts typically do not earn interest on your balance — the bank uses your money to lend to other customers and keeps the interest they earn. In exchange, the bank provides the checking services at a low cost or sometimes no cost. Some checking accounts do earn a small amount of interest, but it is usually less than 0.01% per year, which means you earn very little.
Most checking accounts have a limit on how many times per month you can transfer money out (federal rules used to cap this at six, but that rule changed in 2020). Checking accounts also usually come with overdraft protection — if you spend more than you have, the bank may cover the difference and charge you a fee, or they may decline the transaction. You choose which option you want when you open the account.
What savings accounts are designed to do
A savings account is meant for money you want to keep and grow. The bank pays you interest on your balance — the rate varies by bank and changes over time, but in 2024 many banks offer between 4% and 5% annual interest on savings accounts. That means if you have $1,000 in a savings account earning 4.5%, you earn about $45 per year in interest (though the exact amount depends on how often the bank compounds the interest).
Savings accounts are separate from checking accounts. You can transfer money between them, but you typically cannot use a debit card or write checks from a savings account. The bank limits how many times per month you can withdraw money from savings — this is a federal rule, though the limit is now six times per month for most banks. If you go over the limit, the bank may charge a fee or close the account.
Savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder per bank. That means if the bank fails, the government guarantees you get your money back up to that limit. Checking accounts have the same FDIC protection.
How banks charge fees for checking and savings
Monthly maintenance fees are the most common charge. Some banks charge $10 to $15 per month for a checking account, some charge $5 per month for a savings account, and some charge nothing. The fee often depends on whether you meet certain conditions — for example, a bank might waive the checking account fee if you keep a minimum balance of $500 or set up direct deposit of your paycheck.
Other common fees include overdraft fees (charged when you spend more than you have), out-of-network ATM fees (charged when you use an ATM that does not belong to your bank), and wire transfer fees (charged when you send money to another bank). These fees are separate from the monthly maintenance fee and vary widely by bank.
Before you open an account, the bank must give you a document called a Deposit Account Agreement or Truth in Savings Act disclosure. This document lists every fee the bank charges, the interest rate they pay, and the conditions for keeping the account open. Read this document before you sign — it tells you exactly what you will pay.
Interest rates and how they change
The interest rate a bank pays on savings accounts changes based on what the Federal Reserve does with interest rates. When the Federal Reserve raises its rates, banks usually raise the rates they pay on savings accounts. When the Federal Reserve lowers its rates, banks usually lower the rates they pay on savings accounts. This can happen several times per year.
Different banks pay different rates on the same type of account. Online banks (banks with no physical branches) often pay higher interest rates than traditional banks because they have lower costs. In 2024, some online banks pay 4.5% to 5% on savings accounts, while some traditional banks pay 0.01% to 0.5%. The difference adds up quickly — on a $10,000 balance, the difference between 0.01% and 4.5% is about $450 per year.
Banks must tell you the interest rate and the annual percentage yield (APY) before you open the account. The APY is the rate you actually earn when the bank compounds the interest (adds earned interest back to your balance). The APY is always equal to or higher than the stated interest rate.
How to choose between banks
Start by deciding what matters most to you. If you need to deposit cash or withdraw cash frequently, you may want a bank with physical branches near your home or work. If you rarely use cash, an online bank with no branches may offer better interest rates and lower fees. If you travel a lot, you may want a bank with ATMs in many places or a bank that refunds out-of-network ATM fees.
Compare the monthly fees, the interest rates, and the minimum balance requirements across three to five banks. Many banks let you compare their rates and fees on their website. You can also call the bank and ask questions before you open an account. Once you have narrowed it down, open the account online or in person — most banks let you open both a checking and savings account at the same time.
You do not have to stay with one bank forever. If you find a better rate or lower fees elsewhere, you can open a new account and move your money. Closing an old account is simple — just withdraw your money and tell the bank you want to close it. There is no penalty for closing an account.
Linking checking and savings accounts at the same bank
If you open both accounts at the same bank, you can link them together so money moves easily between them. This is useful if you want to keep most of your money in savings (earning interest) but move some to checking when you need to spend it. You can set up automatic transfers — for example, transfer $500 from savings to checking every payday.
Linking accounts also makes it easier to manage your money through one login and one app. You see both balances in one place and can move money between them instantly, usually with no fee. Some banks also let you link accounts at other banks, though transfers between different banks usually take one to three business days.
Frequently Asked Questions
Can I have a checking account without a savings account?
Yes. You can open just a checking account at any bank. You do not have to open a savings account. Many people keep their checking account at one bank and their savings account at a different bank if the second bank offers a better interest rate.
Do I earn interest on a checking account?
Most checking accounts do not earn interest, or earn less than 0.01% per year. Some banks offer checking accounts that earn interest, but the rate is usually much lower than what a savings account earns. If earning interest is important to you, a savings account is the better choice.
What happens if I need to withdraw money from my savings account more than six times per month?
The bank may charge a fee for each withdrawal over the limit, or they may close your account if you repeatedly go over the limit. Some banks have removed this limit, so check with your bank about their specific rules. If you need to withdraw money frequently, a checking account is a better fit than a savings account.
Is my money safe in a bank account?
Yes, up to $250,000 per account holder per bank. The FDIC (Federal Deposit Insurance Corporation) insures both checking and savings accounts. If the bank fails, the government pays you back. Money in accounts at different banks is insured separately, so you can have $250,000 at Bank A and $250,000 at Bank B, and both are fully protected.
Can I open a checking and savings account online?
Yes. Most banks let you open both accounts online in about 10 to 15 minutes. You will need a government-issued ID, your Social Security number, and proof of your address (like a utility bill or lease). Some banks also let you open accounts in person at a branch if you prefer to speak with someone.