Savings Account: You won’t earn a lot of interest by keeping all of your money in a basic savings account, but this is a very safe way to store it. The good news is that you can keep as much money as you want and take it out whenever you want.
Different banks offer several savings account products. If you will use the account only to save money in, ask for a true savings account. If you intend to have your pay check deposited into the account and use it for your monthly expenses, then a transmission account may be best for you. The interest you receive will vary according to the type of account. Also, some banks won't pay interest unless you have a certain minimum balance in the account at all times. Banks also vary in how much you have to deposit to open an account, and what your minimum balance must be.
You can keep your savings in this account and earn interest on the money. You can still access the money if you need to use it. You will usually get an ATM or Debit Card to use for transactions on this account.
Checking Account: You will get a checkbook and will be able to pay bills with checks. Checking accounts usually pay less interest than savings accounts, and have higher bank charges. You will be charged for each check that you use, so do not write out checks for every little thing. If you have a checking account you can apply for an overdraft. An overdraft is like a personal loan. It allows you to draw more money from your account than you actually have, so that you go into a negative balance. Overdrafts have high interest rates, so it is better to avoid them.