Your Savings Are Meant for More Than Everyday Expenses
Almost everyone who has a bank account has both a checking and a savings account—well, you really should. While they might just appear as two places to store your money, a savings account serves a different purpose from a checking account, not just in symbolism but also in its potential restrictions on your funds.
Financial institutions often have specific rules for savings accounts that differ from checking accounts. For instance, with a checking account, you can withdraw cash from a bank branch or ATM as often as you like without facing any fees or penalties (unless you use a non-network ATM). However, savings accounts typically have a limit on the number of withdrawals allowed per month, usually around six.
Going over the permitted withdrawals may result in a fee. If you consistently exceed this limit, your bank might switch your account to a checking account, transfer the funds to your existing checking account, or even close the savings account altogether. The bottom line is that it’s inconvenient for banks when customers treat their savings account like a checking account, so it’s best to avoid doing that.
Even without these fees, it’s advisable not to dip into your savings unless you’re facing a financial crisis. The primary purpose of a savings account is to set money aside for the future and, if it’s a high-yield savings account, to let it grow in value over time. If you’re constantly using your savings account as a backup wallet, then why did you open it in the first place?
