Checking vs. Savings Account: Differences and How to Use Both
Checking vs. savings accounts compared: how each works, interest, fees, access and insurance, plus a simple system for using both to manage money.
Updated
Banking Fees
Stop paying the fees that quietly drain your accounts.
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The most common bank fees
| Fee | When it’s charged | How to avoid it |
|---|---|---|
| Monthly maintenance | Each month on some accounts | Choose a no-fee account or meet the waiver (balance, direct deposit) |
| Overdraft | Bank pays a transaction that exceeds your balance | Opt out, set alerts, link savings, keep a buffer |
| Nonsufficient funds (NSF) | Payment is declined or returned | Same as above; many banks have dropped this fee |
| Out-of-network ATM | Using another bank’s ATM | Use in-network ATMs or a bank that reimburses ATM fees |
| Wire transfer | Sending or receiving wires | Use ACH or instant payment services when possible |
| Paper statement | Mailing paper statements | Switch to e-statements |
| Excessive withdrawal | Too many savings withdrawals | Know your bank’s limits |
| Foreign transaction | Card use abroad | Use a card without foreign transaction fees |
A simple fee-proof setup
- Choose checking and savings accounts with no monthly fees or easy waivers.
- Turn on low-balance and large-transaction alerts in your banking app.
- Link savings to checking for overdraft protection transfers — often cheaper or free.
- Keep a one-month buffer in checking once you can.
- Review statements monthly and ask for refunds of unexpected fees.
The Consumer Financial Protection Bureau has studied overdraft practices extensively, and many large banks have reduced or eliminated some overdraft and NSF fees in recent years — so if your bank still charges them, it may be worth comparing alternatives on our checking accounts comparison.
Frequently asked questions
Can I get a bank to refund a fee?
Often, yes — especially for a first-time overdraft or when you have a good history with the bank. Call or message customer service and ask politely.
Do I have to be enrolled in overdraft coverage?
For most ATM withdrawals and one-time debit card purchases, federal rules require your consent (opt-in) before a bank can charge an overdraft fee. Without it, those transactions are generally declined instead.
What is the difference between an overdraft fee and an NSF fee?
An overdraft fee is charged when the bank pays a transaction that exceeds your balance. A nonsufficient funds (NSF) fee is charged when the bank declines or returns a payment. Many banks have reduced or eliminated one or both.
Part of our Banking & Savings hub and our complete personal finance guide. Read our editorial standards.
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