The difference between a bank account and a savings account is important to know in order to make sound financial decisions.
Bank accounts are more flexible in the way they manage money, while savings accounts offer greater benefits in terms of remuneration for deposits made.
In addition, bank accounts are usually less expensive and have fewer rules and requirements for opening them.
What is a bank account?
A bank account is a contractual relationship, i.e. a legal arrangement between a person and a bank in which the person deposits money and receives financial services.
The bank account is usually offered with fixed monthly fees, however there are accounts without fees and those that include some additional services such as direct debit of bills.
On the other hand, a savings account consists of a contractual relationship between the saver and the bank where the user deposits his money to obtain interest.
This is a safer alternative to save money without having to worry about the risks of stock market investment.
What is a savings account?
A savings account is a banking service that offers the customer the ability to save money and earn interest.
This account offers a secure way to store funds, which can remain there for an indefinite period of time.
Differences between the two financial accounts
Bank account: A bank account allows the user to do banking transactions, such as depositing funds, withdrawing money, transferring funds between accounts and bill payments.
Savings account: A savings account is an account where the user deposits funds for safekeeping in order to earn interest on his or her money.
Differences between the two financial accounts: The main difference between the two financial accounts is that the bank account allows banking transactions and the savings account allows earning interest on the money deposited.
Advantages and disadvantages of both accounts
The main advantages of a bank account over a savings account is that access to it is easier because they offer fewer restrictions.
You can also get access to a debit and credit card, which allows you to make transactions online and at any ATM.
However, a savings account offers a higher interest rate than a bank account, allowing you to earn higher returns on your savings.
Conclusion
The difference between a bank account and a savings account is significant. Both have their own advantages and disadvantages, but by choosing the right one we can get the best results for our finances.
Finally, it is important to consider our financial needs and objectives before opening one or the other.
