So you’re new to the nursing game, and you’re bringing home the bank. Now what? You’re are most likely looking into putting your earnings into some kind of bank account. Sometimes, navigating the landscape of banking options can be confusing, even when we consider the differences between a checking and savings account. Depending on your financial goals and your current financial status, you may find that one type is more suitable for you than the other – or you may find that you’d like to open both! The good news is that there is an easy, reliable, and risk-free way to save for the future.
Access to Your Money
When it all comes down to it, access to your dollars is what the differences are mainly about when it comes to different banking account options. It’s easier to access the funds you have in your checking account; with checks (electronic and paper) and debit cards, online pay apps and more, your money in your checking account is at the ready, which means a checking account is great for paying bills, purchasing things, and for quick cash at ATMs.
Savings accounts, on the other hand, are best for exactly that: saving. You won’t have paper checks to access your money with, and you also won’t always be able to access funds via your debit card (check with your bank, as this may vary from one institution to another). Oftentimes, the only way you can access your money is when you withdraw it directly, either in person or at an ATM – and the number of withdrawals permitted is limited by federal law. Many people like this limitation because it helps them avoid frivolous withdrawing and spending!
Getting Paid to Bank and Saving for the Future
Another difference between checking accounts and savings accounts is the interest customers can earn. More often than not, you won’t earn interest with checking accounts; however, savings accounts almost always will pay. The more you save, the more interest you’ll earn, just for having your money sit in a savings account!
Interest rates vary from bank to bank and from credit union to credit union and often, there are options at each one for different types of savings accounts, each offering various perks and stipulations. If you’ll be heading to your favorite bank for a checking account and you’re interested in saving while earning a little extra, go ahead and see what they offer for savings accounts, as well.
Paying to Bank
On the flip side, there are sometimes fees you’ll have to pay to have a checking and/or savings account. However, many banks and credit unions offer free checking accounts – or at the very least, offer easy ways to waive the fees (such as maintaining a minimum balance as low as $5.00, for example).
Some savings accounts will charge fees as well or will require higher (sometimes much higher) minimum balances. Be sure to check if your bank or credit union offers a free online checking account (like this one) or savings account.
It’s Easy & Convenient Saving for Future This Way…
Landing that solid gig as a nurse was a big feat, but now it’s time to look to the future and find ways to accumulate wealth over time. Thankfully, it’s easy. Tuck away funds and grow your account with interest payments over time with these simple and straightforward tehcniques, and start looking toward the future today.