What is the primary difference between a checking account and a savings account?

The primary difference between a checking account and a savings account lies in their intended uses and features. A checking account is specifically designed for daily transactions, such as depositing paychecks, writing checks, and making purchases with a debit card. This type of account typically allows for unlimited transactions, making it convenient for managing day-to-day finances.

In contrast, a savings account is focused on helping individuals save money over time. It usually offers interest on the balance, which can help the account grow, but it might have limitations on the number of transactions or withdrawals allowed each month. The primary purpose of a savings account is to encourage saving and to act as a financial cushion, rather than facilitating frequent transactions like a checking account.

This distinction between the two types of accounts is essential for effective money management, as it helps individuals choose the right account for their financial needs.