Savings accounts are a go-to option for setting aside money, growing it through interest, and keeping it safe. However, when it comes to accessing that money for day-to-day transactions, especially writing checks, things can get a bit tricky. You might wonder: Can you write checks from a savings account, or do you need to rely solely on a checking account for that?
In this article, we’ll explore how a savings account works, why check-writing might be restricted, and discuss alternatives to access your savings when you need them.
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How does a traditional savings account work?
Savings accounts are primarily designed to save money and earn interest over time. They aren’t intended for day-to-day transactions or frequent withdrawals.
With the rise of online-only banking, some might wonder, “how does an online savings account work? Is there any difference?” Online savings accounts function similarly to traditional savings accounts but often offer higher interest rates. Transactions are managed online, and they generally do not provide check-writing services.
Can you write checks from a savings account?
No, you can’t write checks from a savings account. Savings accounts typically don’t come with check-writing privileges.
Financial institutions limit the transactions you can make from a savings account—including writing checks—to encourage you to save rather than spend.
The federal government has guidelines that restrict the number of certain withdrawals and transfers from savings accounts to six per month. These restrictions make it impractical for regular bill payments or everyday purchases.
Which type of bank accounts allow you to write checks?
That’s where checking accounts come into play. Checking accounts offer easy access to your money with features like check-writing, debit card usage, and unlimited transactions, making them more suitable for daily expenses.
They're the primary accounts that allow check-writing. However, some money market accounts also offer limited check-writing privileges.
Alternative options for accessing funds
What if you’re in a bind and need to access your savings? While you can’t directly write checks from a savings account, there are workarounds to access your funds when needed.
Transfer to checking account
The most straightforward way is to transfer money from your savings to your checking account, where you can then write a check or use a debit card. Most banks allow you to do this online, through a mobile app, or by visiting a branch.
Request a cashier’s check
If you need to pay a large bill or make a significant purchase, you can request a cashier’s check from your bank. This is a bank-issued check drawn from your savings account, and it’s often used for substantial transactions.
Link to a checking account
Some banks allow you to link your savings account to your checking account. This can serve as overdraft protection, where funds are automatically transferred from savings if you overdraw your checking account. However, overdraft protection may also come with potential fees whenever you trigger this benefit.
FAQs
Is your money stuck in a savings account?
Not at all. You can access your funds by transferring them to a checking account, withdrawing cash, or requesting a cashier's check.
Can you make payments from a savings account?
No, savings accounts are not designed for direct payments or frequent transactions. You'll need to transfer funds to a checking account first and then make payments from there.
Why not just use a checking account?
You might be wondering, why go through all this trouble? Why not just use a checking account for everything?
Checking accounts are designed for frequent transactions and come with features like check-writing and debit cards, making them perfect for daily use. However, they often offer lower interest rates compared to savings accounts.
So, the bottom line is that checking accounts are ideal for spending, and savings accounts are better for growing your money over time.