Bank accounts come in several different varieties, and checking accounts and savings accounts are the most common. Though there is a difference between checking and savings accounts, both types of accounts can be useful, and you may want to consider getting both instead of choosing one or the other, depending on your particular situation.
Identification
A checking account gives you ready access to money that you need for regular use, such as to pay bills or buy groceries. You can easily access the money in your checking account by using a debit or ATM card, writing checks or making a withdrawal. A savings account lets you accumulate funds and collect interest on them; though you can withdraw money from a savings account, the process is more complicated than taking money from a checking account.
Benefits
A checking account is almost a necessity in the United States, where people rarely carry cash. Checking accounts can also make it easy to check your monthly expenditures and set a budget, since you get a list of all your transactions every month. Savings accounts can be a useful aid in setting aside money against future emergencies or for upcoming purchases. Because the money in your savings account is more difficult to access, you're less likely to spend it unless you really need it.
Considerations
Many checking accounts require an annual, monthly or one-time fee to maintain, and costs can vary from bank to bank, depending on your current financial status and the bank's policies. Some banks also charge you for ATM or debit cards and checks, or for teller visits or to add online banking, so shop around to find the right checking account for you. In the same way, different banks have different savings account options, with variable amounts of interest you can earn and different limitations and penalties when you access your money.
Warning
If you have a checking account, it's important to keep up with your balance so that you don't accidentally write a check or make a debit card purchase for money than you have in your account. Most banks charge hefty fees for overdrawing your account in this way, and the check's recipient may make you responsible for additional fees as well. This is unlikely to happen with savings accounts, since they're rarely used for everyday purchases.
Creation
To obtain a checking account or a savings account, you can visit a local branch of a bank, apply online or call the toll free number of a bank you're interested in. (You can find toll free numbers for most banks on the Contact Us section of their website.) You'll need to show proof of identity, such as a driver's license, passport or Social Security card. If you're not a U.S. citizen, you'll need to show your visa and appropriate forms, usually your I-20 and I-94 forms, but check with your bank to find out their particular requirements.
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