What’s the difference between a High-Yield Checking Account and a High-Yield Savings Account?
Both options offer you higher APY compared to your traditional checking and savings products. There are distinct differences to be made aware of before making a decision.
A savings account is designed for you to save for your financial goals and future. You can save over time and track your savings daily, weekly, and monthly and place it in an account where you do not plan to withdraw the funds frequently.
A checking account is designed for you to use to pay bills, conduct your daily spending, deposit and withdraw funds, send ACH transfers or wires, and more.
So, if you plan to spend money daily while earning interest on your transactions and daily balance quarterly choose a high-yield checking account. If you plan to save money and want to earn interest quarterly only withdraw the funds when you reach a savings goal choose a high-yield checking account.