What Is the Difference Between a Checking and a Savings Account?

A checking account is built for everyday spending; a savings account is built for setting money aside and earning interest. Most people use both.

Updated May 21, 2026

Checking and savings accounts are both deposit accounts, but they are designed for different jobs. Most people use both together — one for spending, one for saving.

A checking account is built for everyday money movement:

Comes with a debit card, checks, and bill pay.
Designed for frequent transactions — deposits, purchases, withdrawals, and transfers.
Typically earns little or no interest.
Best for the money you spend month to month.

A savings account is built for setting money aside:

Earns interest, expressed as an APY.
Designed to hold money you do not need right away.
Best for goals, big planned purchases, and your emergency fund.

How they work together: your paycheck lands in checking, you cover bills and spending from there, and you move a set amount into savings each month so it can grow.

Which do you need? Most people benefit from having both. Get started with opening an RMO checking account and opening an RMO savings account.

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Disclosure. This page is general educational information. Deposit accounts and banking services are offered through RMO Bank. RMO Bank deposit accounts — checking, savings, money market, and certificates of deposit — are insured by the FDIC up to the maximum amount permitted by law. Account terms, fees, and rates are disclosed in the applicable account agreement and fee schedule, which govern.