Jennifer Lough

Nov 04 2019

What’s the Difference Between Checking and Savings Accounts?


Checking and savings accounts are two basic accounts offered by financial institutions. They serve the same overall purpose– to house your money – but have a few key differences.

Checking Account

A checking account is used for day-to-day banking. This includes activities and transactions like depositing and withdrawing money, writing checks, direct depositing your paycheck, transferring money to other accounts, and making purchases with a debit card. In addition, most checking accounts allow an unlimited amount of transactions per month. This is an important aspect to remember when deciding what kind of bank account is right for you.

Some checking accounts can even earn interest on the account balance after meeting certain requirements, like our High Interest Checking Account.

Savings Account

In comparison to checking accounts, a saving account’s purpose is to house your money over the long-term with minimal withdrawal transactions and activities on the account. To incentivize this, savings accounts often offer modest interest rates to grow your funds over time – provided you meet the account requirements.

A savings account is a safe place to store your money and allows access when needed, but limits how many transactions happen on the account per month. For this reason, it may be beneficial to have a savings account in addition to a checking account (where you are not limited to a certain amount of transactions per month).


When looking for checking or savings accounts, make sure you find one that has no minimum balance requirement, doesn’t charge monthly maintenance fees, and is a part of a large ATM network. These perks ensure that you won’t be surprised by charges on the account, and will have greater access to your money without paying ATM fees.

If you are interested in learning more about the accounts Hills Bank offers, visit us online at, speak with a banker at 1-800-445-5725 or through our HERE app on your smartphone, or stop by any of our locations to have a conversation today!

Jennifer Lough

About Jennifer Lough

Jennifer Lough is a Vice President and Branch Manager at Hills Bank’s Coralville location and University of Iowa Hospital and Clinics location. She has been at Hills Bank since 2000 helping customers with checking, savings, and loan needs. Jennifer has 20+ years of experience in the banking industry. Her joys in life are her two sons, her husband Brian, returning to her family’s farm, and exercising. She can be reached at

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