When organizing finances, common questions arise about which tool is most useful.
The decision of open checking account It is usually motivated by the need to have money available in a single place from which to manage transactions, while a savings account has a more conservative purpose: collecting money periodically in order to use it later.
Both are complementary, but work under opposite logic that every user should know before contracting a checking account plan or an investment product.
Fundamental differences between opening a checking account or a savings account
To choose correctly, it is necessary to break down how each one operates in the aspects that really impact your pocket:
1. Objective: management vs. guard
The current account It is designed for daily money flow. It is a management tool that allows you to receive your salary, pay for services and make unlimited transfers.
On the contrary, the main purpose of the savings account is to protect capital in the medium or long term, encouraging the user not to touch that money to generate interest.
2. Profitability and protection against inflation
The star feature of a savings account is the profitability (interest); In some cases, they even readjust in UF, so the money “grows” over time.
A checking account generally does not offer interest on the balance held. Its value lies in the associated services and immediate availability.
3. Payment methods and immediate availability
One of the biggest differences lies in the way the funds are accessed.
When you open a checking account, you access a debit card, credit card and, sometimes, a checkbook and line of credit (overdraft).
In a savings account, however, access is more restricted: although there are cards for transfers (or a savings book), many plans limit the number of annual withdrawals so as not to lose interest earnings.
4. Associated costs and commissions
A checking account plan usually has a monthly commission that covers the administration of multiple products (cards, insurance, assistance).
However, today it is common to find options to reduce this cost to $0 by meeting requirements such as payment of salary.
The savings account, on the other hand, is usually free or low-cost, but charges may apply if the number of withdrawals allowed is exceeded.
What type of account to choose according to your profile?
It is not necessary to choose just one; You can use the checking account for monthly movement (salary and expenses) and automatically derive a percentage to a savings account.
- Choose the checking account if: you need to pay bills, buy in stores (physical or online), make frequent transfers and access immediate financing through credit card.
- Choose the savings account if: you have a surplus of money that you do not plan to use in the short term and you want to protect it from inflation or save money for a home or future project.
If you are looking for a robust platform to manage your income with exclusive benefits, you can find out how to open a checking account on the websites of the various banks that operate in Chile and evaluate what the current account plan or savings that best suits your needs.
