How does a savings account differ from a checking account?

A savings account is primarily designed to help individuals save money while earning interest on their deposited funds. The focus of a savings account is on accumulation and growth of savings, which is why it typically offers interest, allowing the balance to increase over time. This account is not intended for regular transactions; instead, it serves as a secure place to store funds for future needs or emergencies.

In contrast, checking accounts are meant for everyday financial transactions, such as paying bills or making purchases. They usually do not offer interest or provide minimal interest compared to savings accounts. Understanding this distinction highlights the purpose of maintaining both types of accounts: a savings account for growth and a checking account for convenient access to funds when needed.