Checking accounts are set up to be convenient for everyday spending, including purchases, bill payments, and ATM withdrawals. Savings accounts, on the other hand, are mostly used to set aside money for long-term goals. Savings accounts usually earn dividends on balances. However, checking accounts typically earn smaller dividends than savings, or none at all. Depending on the financial institution, checking accounts sometimes come with fees. The most common ones are overdraft, ATM and monthly maintenance fees. A financial institution may waive maintenance fees if you keep a set minimum balance in your account or require other activities to avoid their fees.
Both types of accounts are federally insured by NCUA. Each kind of account has specific features that make it beneficial for users. Here is a breakdown of both account types and their unique features.
Checking vs. Savings Accounts
These typical features of checking and savings accounts illustrate the differences between them:
| Checking Accounts | Savings Accounts |
| Earns no dividends or a lower dividend rate than savings | May earn higher dividend rates than checking |
| Branch and ATM access | Branch and ATM access |
| Online and mobile banking service | Online and mobile banking service |
| Debit card | ATM card for some accounts |
| Paper checks | |
| Electronic payments | |
| Direct deposit | Direct deposit available for some accounts |
Benefits of a Checking Account
The key features of a checking account are designed to make deposits and withdrawals convenient. Account holders can deposit cash and checks at a branch or Bethpage branch ATM, and have their paychecks directly deposited by their employer.
There are also multiple ways to withdraw money. Account holders can get cash from a branch or ATM, plus make purchases and pay bills through a debit card, check, or money order. Money can also be transferred electronically into and out of checking accounts. This enables account holders to pay bills electronically, transfer money between accounts, and pay friends and family through apps.
Benefits of a Savings Account
Typically, a savings account is used for a financial goal or specific purpose. It can be used as emergency funds, money for a vacation, saving for a down payment for a future home, or to store money for big purchases like a new car or home improvements.
By design, money kept in a savings account is harder to spend. Savings accounts also have features to help customers accumulate funds over time, such as offering dividends on funds in the account.
Checking or Savings: Which Is Right for You?
Since these account types have different purposes, it should be simple to know which one meets your needs. Do you want an account to make day-to-day spending convenient or do you want someplace to put aside funds for emergencies or future goals? For most people, it’s a good idea to have both.
It isn’t difficult to open two accounts and, with online and mobile banking, it’s easier than ever to monitor and manage them. Having both a checking and savings account offers the best of both worlds — access to the money you need every day and a secure place to put aside funds for other purposes.
In addition, linking a savings account to a checking account can provide overdraft protection, saving you from high fees if you inadvertently spend more than you have available in checking. In addition, linking accounts makes it very simple to save. You can have a regular amount automatically transferred each month from checking into savings, preferably right after you get paid. You’ll save without even thinking about it.
Banking with Bethpage Federal Credit Union
At Bethpage, our focus is on helping our members. With a checking account from Bethpage, you get an exceptional member experience plus benefits that are hard to find anywhere else:
Bethpage Checking:
- Easy online account opening
- 30,000+ surcharge-free ATMs nationwide through the Co-op ATM Network*
- 5,000+ Co-op shared branch locations
- 24/7 Mobile Banking with Mobile Check Deposit
- Student Checking Accounts available for ages 13 - 20 (Parent/Guardian required if under 18)
Bethpage Savings:
- Minimum opening balance of only $5
- Free ATM card
- Options for individual or joint ownership
- Deposits can be made through Direct Deposit and payroll deduction
Ready to open an account with us? It’s simple and rewarding.
Open a Checking Account
Open a Savings Account
*Surcharge-free ATMs through the Co-op ATM Network must show Co-op ATM logo. ATM transactions performed at ATMs outside of the Co-op ATM Network may be subject to the ATM owner’s fee. Please visit our online ATM Locator for a list of surcharge-free ATMs and Shared Branch locations.