What is the primary difference between a checking account and a savings account?

The primary difference between a checking account and a savings account lies in their intended use, with checking accounts being primarily designed for daily transactions. Checking accounts provide easy access to funds for frequent expenditures such as paying bills, making purchases, and managing everyday cash flow. They typically come with features like check-writing, debit card access, and electronic payment options, which facilitate regular, ongoing transactions.

On the other hand, savings accounts are generally intended for saving money and managing funds over a longer term without frequent withdrawals. They often encourage saving by offering interest on the balance, though the transaction capabilities are usually limited compared to checking accounts. This distinction in purpose and functionality underscores why checking accounts are favored for daily financial activities.