Is a debit card a checking account or savings account

If you’re wondering how safe your money is in a checking account or a savings account, you can rest easy.

As long as your bank or credit union is a member of the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Association (NCUA), your deposits are insured.

As the FDIC explains, “Deposit insurance is one of the significant benefits of having an account at an FDIC-insured bank—it’s how the FDIC protects your money in the unlikely event of a bank failure. The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. And you don’t have to purchase deposit insurance. If you open a deposit account in an FDIC-insured bank, you are automatically covered.”

And the NCUA says, “Federally insured credit unions offer a safe place for credit union members to save money. All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union.”

Keep in mind that non-deposit investment accounts—like mutual funds, stocks and bonds—are not insured.

It’s also worth noting that liability for a lost or stolen debit card varies, depending on how quickly you report it. But some banks—including Capital One—offer $0 fraud liability if the card is lost or stolen.

A checking account is a bank account you can write checks from, or access several other ways, which tends to make it your go-to, daily transaction bank account. A savings account is where you stash funds that you aren’t ready to use yet, often with the goal of accumulating more. The differences between them affect how you can use each to manage your financial life—and you’re likely to find both handy.

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The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank, for each account ownership category. That means you’re protected if your bank were to fail.

Now that you know the difference between checking and savings accounts and how each can help you, you’re ready to get the most out of each and use them to work toward your goals.

Learn more about your checking and savings options from Bank of America.

More from Bank of America

If you’re new to banking, you may be curious about which account is right for you: checking or savings? Should you open a checking account to get access to a debit card? Or, should you open a savings account to take advantage of interest? Do you really need both? Learn more about the differences between checking and savings, and find out how both accounts can benefit you.

Checking Accounts: Money for Everyday Needs

The main difference between checking and savings accounts is that checking accounts are primarily for accessing your money for daily use while savings accounts are primarily for saving money. Checking accounts are considered “transactional,” meaning that they allow you to access your money when and where you need it. While both allow you to access your money, you may consider it easier to do so with checking accounts. Since these accounts are designed to give you easy access to your cash, they often come with debit cards, checks, and even offer digital payment options like Apple Pay. In contrast, savings accounts have a limit on the number of withdrawals you can make each month.

While checking accounts are convenient for daily cash needs, it’s important to remember that they may be age restricted. Most banks won’t allow people under the age of 18 to open a checking account without a parent or legal guardian as a co-owner of the account. Before opening a checking account, make sure that its terms fit your financial needs and your lifestyle. Learn more about how to open a checking account.

Compare checking account options.

Savings Accounts: Money for Long-Term Goals

When it comes to setting aside money for a long-term need or goal, you should consider a savings account. Savings accounts are designed to hold money over a long period of time to help you save for larger goals (rather than everyday purchases). As your money stays in the account, it will accrue interest and grow over time. This means that you will need to visit your bank, set up a transfer online1, or make an ATM withdrawal to access your money.

Keeping some of your money in a savings account is a great way to set it aside for emergencies or large purchases – its limited access will keep you from spending it on day-to-day necessities. There are also dedicated savings accounts for kids, though a parent or guardian is usually required as a joint owner. Learn more about how savings accounts work.

Compare types of savings accounts.

Checking vs. Savings Accounts – Which is Best for Me?

If you’re trying to decide between savings or checking, it’s best to consider what you need from your bank account. Ideally, you should open both a checking and a savings account to enjoy the benefits of each. Santander Bank offers a range of checking and savings options so you can choose the accounts that are right for you. Learn more about our personal banking products or visit your local branch to speak with one of our banking associates.

New to bank accounts, or have additional questions? Visit our checking and saving resources to get answers to frequently asked checking or savings questions.

1We limit withdrawals and transfers out of your savings and money market savings accounts. You can withdraw or transfer funds from a savings or money market savings account a total of six (6) times per Service Fee Period (such as by automatic or pre-authorized transfers using telephone, online banking, mobile banking, overdraft protection, payments to third parties, wire transfers, checks, and drafts). If you repeatedly exceed these limits, we may close or convert your account to a checking account, which may be a non-interest-bearing checking account.

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