Difference Between a New Bedford Checking Account and Savings

New Bedford Checking and Savings AccountsHow much thought do you put into the options provided by different types of accounts at your local Massachusetts credit union? The more you learn about credit union banking, the better you will be able to use these financial tools to your advantage. A credit union savings account is required to start a membership at St Anne Credit Union in New Bedford. Membership is open to anyone who works or lives within Plymouth and Bristol counties in Southeastern Massachusetts. A $25 deposit is all that is needed to open a credit union savings account. To launch a New Bedford checking account or apply for a credit union home loan, you must start by opening a simple Main Share Account to establish your membership.

What is a Checking Account?

In the simplest of terms, a checking account is designed for everyday use to support financial transactions, including cashing checks, depositing paychecks, paying bills, and taking out funds from ATMs. The money that is kept in a checking account is typically designated for use, either to run a household, ensure that monthly bills are paid, make loan payments, or to pay for incidentals and entertainment expenses. Most checking accounts to not require a minimum balance; however, some do and might even reward or charge account holders for not meeting basic requirements. Interest is not typically earned for a New Bedford checking account at both traditional banks and Massachusetts credit union organizations.

Account holders have 24-hours a day, seven-day a week access to checking accounts and there are no restrictions concerning the number of debits, charges, or withdrawals made against it in a day, week, or month. Additional features may be made available, depending on the institution. Things like overdraft protection, automatic bill pay, money transfers, and other external online transactions are just some of the perks associated with using a checking account. Monthly fees can also vary, depending on the policies of the bank or credit union. Members at St Anne Credit Union can use their checking account to make payments for bills that include a credit union home loan or auto loan. Funds can be transferred easily from a checking account to a credit union savings account to help increase savings opportunities.

What is a Savings Account?

Contrary to a checking account, which is designed for daily use, a savings account has limits on the number of allowed withdrawals in a 30-day period and might even have restrictions about the percentage of the balance that can be withdrawn. Speak with a representative at your banking institution to find out the limits. Some limits and restrictions are due to government regulation and cannot be negotiated by the financial organization. In most cases, credit unions allow between three and six withdrawals per month; however, unlimited deposits can be made to just about any type of savings account.

The amount of interest that is earned, along with any fees for using a savings account, can also vary by institution. You can see the current interest rates for savings accounts on the St Anne Credit Union website and speak with a representative about any applicable fees. A savings account is the best tool to use for risk-free savings, either on a short-term or long-term basis. Savings accounts were meant to be used to save money. You can use them to create an emergency fund, start saving for a down payment on a new car or house, put money aside for education, vacation planning, or just about anything else you want to do with your money.

Using Checking and Savings Together

There’s a reason why you often hear the term “checking-and-savings” as though it were one word. These accounts work best when used together to help increase money management for the credit union member. When you decide to join a Massachusetts credit union, you do so by starting with what we call the Main Share Account. The minimum amount required to open an account at St Anne Credit Union in New Bedford is $25.00. Once you have a Main Share Account and establish yourself as a member, you can open a Share Draft checking account, Christmas Club account, or start growing your money with Certificate of Deposit (CD), Money Market Deposit Account, and IRA Share Account opportunities.

If you are interested in learning more about the types of accounts and financial options available at St Anne Credit Union, give us a call at 508-993-0011. Whether you want to use a New Bedford checking account to pay bills, a credit union savings account to build up an emergency fund, or would like to establish a membership to apply for a credit union home loan or auto loan in the future, our team can help you get started. Call today and see why so many of your friends, neighbors, and coworkers in Bristol and Plymouth counties have joined St Anne Credit Union in New Bedford.