Features

• Checking and savings accounts are deposit accounts. Checking accounts allow users to deposit and withdraw funds whenever they wish, usually by check or automated teller machine. Savings accounts typically do not allow users to withdraw funds via check or ATM.
  
  

Function

• Consumers use checking accounts for frequent transactions and paying bills in the short term. Savings accounts hold funds set aside for emergencies and/or medium and long-term financial goals, with few withdrawals.
  
  

Benefits

• All savings accounts and some checking accounts accumulate interest on balances held, but savings accounts typically pay more interest than checking accounts.
  
  

Limitations

• There is generally no limit placed on the number of transfers and withdrawals consumers can make per month from a checking account. Savings accounts, however, do have a transaction limit, set by the Federal Reserve to prevent consumers from using a savings account as they would a checking account.
  
  

Liability

• Checking and savings accounts make up a portion of a bank's or other deposit-taking organization's liabilities, used for issuing loans and making other investments.