Which statement best describes the difference between a checking account and a savings account?
A. Checking accounts provide customers with interest, while savings accounts do not.
B. Checking accounts are held only by businesses and savings accounts only by individuals.
C. Checking accounts allow customers to easily pay for goods and services, while savings accounts are used to save money for longer periods of time.
D. Checking accounts require customers to go into a bank branch, while savings accounts are accessed by customers on their mobile phones or computers.
Answer (1)
The main difference between checking and savings accounts is their purpose: checking accounts facilitate everyday spending, while savings accounts are designed for saving money over time. Checking accounts typically do not earn interest, whereas savings accounts often offer interest on deposited funds. Thus, checking accounts are ideal for transactions, while savings accounts focus on accumulating savings. ;
