When it comes to personal finance, there are so many types of bank accounts to choose from. At Quontic, we empower our customers to choose the best deposit accounts to fit their financial goals. Have you been looking to save to start a family, own a home, or putting funds aside for a rainy day? Or are you ready to take your account balances to new heights through cryptocurrency and cashback rewards? No matter what your needs are, we’re diving deep into what checking AND savings accounts have to offer, the difference between checking and savings, and most importantly, how to sign up for the account that works for you.
What is a checking account?
A checking account is a deposit account that allows the account holder to make cash & check deposits and withdrawals. Typically, these accounts are used for everyday transactions like making purchases and paying bills. These types of accounts create easy access for your money through a debit card, ATMs, or checks. Put simply, checking accounts are made for spending. Checking accounts can be funded through various financial institutions like online banks, traditional banks, or credit unions.
What is a savings account?
A savings account is a deposit account that allows the account holder to store money they aren’t ready to use yet or need immediate access to. This is because the goal of a savings account is to accrue funds over time as a store of wealth. Most savings accounts pay interest back to their account holders based on account balances and other factors. These accounts are typically used for emergency funds or big-ticket purchases that require planning like vacations, down payments for a home, or even a new car. Most customers take the savings account approach rather than a credit card for example, because instead of paying interest back, you’re accumulating it for yourself.
What are some of the differences between a checking and savings account?
While people use checking and savings accounts for different purposes, the common use for checking or savings usually comes down to spending vs. stashing. For example, most customers think of their savings accounts as emergency funds to set aside for a rainy day. However, checking accounts are more transactional, with the idea that your spending money and bill pay stems comes from your checking account. It all comes down to access. Checking accounts come with a debit card and checks to use your money on the go. However, savings accounts typically don’t include neither checks or a debit card. If you’re a serial spender and always carry cash, a checking account would be a great route for you. More cognizant of your coins and always preparing for a rainy day? A savings account is in your future.
What are potential advantages of a savings account?
Online savings accounts are a great way to accrue wealth, digitally! With an Interest bearing account, customers have the option to accrue Annual Percentage Yield (APY) over time. Typically, savings accounts offer higher interest rates than checking accounts, since the expectation is that your money will be stored for a long period of time. Another added benefit of a savings account is the convenience and trust of storing your money in one place. With a digital bank like Quontic, you can access your account via online banking and mobile banking 24/7.
What are potential advantages of a checking account?
There are many advantages that come with having a checking account in your banking portfolio. These accounts provide account holders with easier access to their funds. When it comes to checking accounts, most customers use this route for more common and everyday purchases. This account is most likely to be utilized for direct deposits of their paychecks, make wire transfers to businesses, transfer money to friends and family, and make bill payments, for instance. Furthermore, some financial institutions also offer rewards with their Checking accounts like cash back, competitive interest rates based on balances, and even Bitcoin! Quontic has a checking account for those looking to capitalize on Bitcoin, earn a significant APY on their balance, or just want to be rewarded for their purchases.
What are potential disadvantages of a checking account?
When analyzing checking accounts and weighing the pros and cons, different banks have different constraints. For instance, some banks have restrictions on ATM withdrawals or charge overdraft fees if there’s an insufficient balance on the account. Also, there could be account fees that come with signing up or accumulate on a monthly basis. Additionally, some checking accounts have withdrawal limits that cap your spending at a certain amount each month or charge ATM fees if you don’t use a network ATM.
What are potential disadvantages of a savings account?
Savings accounts aren’t the perfect fit for all customers, however. There could be a few disadvantages based on your spending habits and current financial landscape. For example, for some financial institutions, there could be minimum balance requirements that need to be met in order to qualify for a certain APY. Additionally, since savings accounts are intended to be a store of wealth, account holders may be penalized for the number of transactions like withdrawals or transfers per month.
How can I benefit from both a checking and savings account?
The great thing about checking and savings accounts are you don’t have to just choose one! If you’re starting with a savings account, you would still benefit from a checking account, and vice versa. Saving large sums of money over time can be hard, which is why having a checking account to support and fund the savings account to start is a great first step. What’s more, across the industry, APY’s have decreased drastically on savings accounts over the years. This dismal reality has a silver lining, however! Due to this, many checking accounts actually offer a higher APY resulting in a customer shift what would be their savings balance to their checking account to earn more interest.
What type of checking and savings accounts does Quontic offer?
There are a plethora amount of checking and savings accounts to choose from, it all depends on what your interests are and what financial goals you’re trying to reach. For instance, different savings accounts have more aggressive or long term approaches to accumulating interest. At Quontic, on the savings side we offer a maximizing Money market account, competitive Certificate of Deposit accounts, and standard-setting high-yield savings account.
If checking accounts are more your speed, Quontic has plenty to offer. Explore the Bitcoin buzz with our Bitcoin Rewards Checking account, where you can earn 1.5% bitcoin on eligible debit card transactions1. Our High Interest Checking account is a very popular tiered account, toting a shocking 1.10% APY2 on all balance tiers. Last but certainly not least, our Cash Rewards Checking account gives our customers the opportunity to earn 1.5% cash back on eligible purchases3.
Why should I choose Quontic for a checking or savings account?
Eligible checking and savings accounts are Federal Deposit Insurance Corporation (FDIC)4 insured which means your money is safely protected, dollar for dollar. Additionally, we don’t charge you a monthly maintenance fee for our deposit accounts and you have access to any network ATM in more than 90,000 locations across the country. Best of all, our bank never closes. You can access your accounts via online banking or mobile banking 24/7. Ready to start banking with Quontic? Click here to open an account.
1Bitcoin Reward Checking account is a non-interest bearing personal checking account, requires a minimum of $500.00 to open the account, and does not require a minimum daily balance to earn Bitcoin rewards. Qualifying Point of Sale (POS) Debit Card Transactions (“Eligible Debit Card Transactions”) shall receive Bitcoin Rewards at the U.S. dollar value of 1.50% on all Qualifying POS Debit Card Transactions that post and settle to the Bitcoin Rewards Checking Account. Fees and terms are subject to change. Additional terms and conditions may apply. No Bitcoin Rewards will be paid if the Qualifying POS Debit Card Transaction requirements are not met or if the requirements for establishing an account with NYDIG Execution LLC (“NYDIG Account”) are not met. The following are not Qualifying POS Debit Card Transactions and do not count toward earning Bitcoin Rewards: ATM-processed transactions; transfers between accounts; purchases made with debit cards not issued by the Bank; cash over portions of POS transactions; Peer-to-Peer (P2P) payments (such as Apple Pay Cash); loan payments or account funding made with your debit card and purchases made using third-party payment accounts (services such as Venmo®️ and PayPal™️, who also provide P2P payments). Transactions may take one or more business days from the date the transaction was made to post and settle to an account. Bitcoin earned through this program can only be sold and redeemed for cash and cannot be transferred or spent, including in the metaverse. Bitcoin execution and custody services in connection with the Bitcoin Rewards Checking account are provided by NYDIG Execution LLC (“NYDIG”). NYDIG is authorized by the New York State Department of Financial Services to engage in virtual currency business activity. To receive bitcoin services an account will be opened with NYDIG in which your bitcoin will be held (the “NYDIG Account”). Please refer to NYDIG’s User Agreement for more information, including applicable eligibility criteria. Bitcoin balances in your NYDIG Account are not insured by the Federal Deposit Insurance Corporation (FDIC), the Securities Investor Protection Corporation (SIPC), or any other public or private insurer. NYDIG does not make any recommendations regarding buying or selling bitcoin. There are risks associated with bitcoin trading, including possible loss of value. See NYDIG’s User Agreement. Individual transactions in the rewards program are not recorded on the blockchain. Information is published as of August 4, 2022.
2High Interest Checking Account is a conditional tiered variable rate account wherein you must deposit $100.00 to open this account. After fulfilling the minimum qualifying activity requirements per statement cycle of 10 qualifying Point of Sale debit card transactions equal to or over $10.00 per transaction, the 1.10% annual percentage yield (APY) applies to all balance tiers, which are identified as $0–$150,000, $150,000.01–$1,000,000 and balances over $1,000,000. If the qualifying activity requirement is NOT fulfilled, the annual percentage yield on the balance will be 0.01%. Ask for details. Additional terms, conditions, fees & exclusions may apply. Rates may change without notice. If the account is closed before interest and/or bonus is credited, accrued interest and/or bonus may be forfeited for that statement cycle. Fees could reduce earnings. The following activities are not considered qualifying POS debit card transactions and do not count toward earning rewards: ATM- processed transactions; transfers between accounts; purchases made with debit cards not issued by our bank; cash over portions of point-of-sale transactions; Peer-to-Peer (P2P) payments (such as Apple Pay Cash*); loan payments or account funding made with your debit card and purchases made using third-party payment accounts. Transactions may take one or more business days from the date the transaction was made to post and settle to an account. Online Account Opening is only available to consumers. Data connection required to open an account online. Carrier fees may apply. Application is subject to approval. Information is accurate as of August 4, 2022 and may change without notice.
3Cash Rewards Checking: This is a personal non-interest bearing account. You must deposit $100.00 to open this account. No minimum daily balance required to receive the cash back reward and no monthly maintenance fee. Fees reduce earnings. Qualifying point of sale (POS) debit card transactions (“Eligible Debit Card Purchases”) shall receive 1.50% cash back that post and settle to the account each statement cycle. The following activities are not considered POS debit card transactions and do not count toward earning rewards: ATM- processed transactions; transfers between accounts; purchases made with debit cards not issued by our bank; cash over portions of point-of-sale transactions; Peer-to-Peer (P2P) payments (such as Apple Pay Cash*); loan payments or account funding made with your debit card and purchases made using third-party payment accounts. Transactions may take one or more business days from the date the transaction was made to post and settle to an account. Ask for details. Additional terms, conditions, fees & exclusions may apply. Application is subject to approval & further review. Information is accurate as of August 4, 2022 and may change without notice.
4FDIC insurance is applicable to eligible deposit accounts and up to the maximum allowed by law. Learn more at https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/index.html