Saving accounts are great to keep the cash. When you earn interest, you can get money once you need it. How accessible if you write a check from your saving accounts? Let’s find out.
Opening a bank account is one of the first important things you do in your financial life. Frequently, banks offer both checking and savings accounts. Therefore, you could keep all your money in one place. Both checking and savings accounts have different account numbers. Is it possible to write a check from my savings? Let’s find out the answer in this below article.
Question: Can I write a check from my savings account?
Both checking and savings accounts have the account number. Therefore, you can send and receive money such as making bill payments, paychecks, or via electronic deposits. If you link your checking and savings account, you could see your balances when you log in to your bank account.
However, there are also some differences between checking and saving accounts. Checking accounts are typically used for spending money while saving accounts have a few regulated limits on how much can get cash out in a month.
A savings account is a great tool to keep and boost the amount of your cash. When you earn interest and the money is accessible, you can get money once you need it. However, Can I write a check from my savings account? The answer to this question is generally no. Banks do not issue debit cards for your savings accounts and rarely allow you to write a check for payments or purchases.
Why can’t you make payments from your savings accounts?
Savings accounts are designed for storing your money for the long term, not for making transactions. As a result, federal laws set limits for withdrawals of money from saving accounts, according to Regulation D.
When processing your checking account, you can withdraw as many times as you want by writing a check, using a debit card or making electronic-bills payments, or withdrawing money. For savings accounts, those kinds of payments as well as electronic payments and automatic transfers, are limited to make transactions six times per month. That explains why you can not use your debit card or write checks from your savings account or use them to shop online. Without a limit from your bank, you will probably go over the federal limit and your bank will be in trouble if you write a check from your savings account.
Are there any other options to write a check?
If you want an interest-paying account and also provide the service to easily spend that money, you have several options: an interest checking account and a money market account.
As its name implies, interest checking accounts are just accounts that pay interest on your cash. There are no monthly transaction limits for interest checking accounts. Interest rates are typically lower than what you can get on a savings account. However, online interest checking accounts have a competitive interest.
Money market accounts are like deposited savings accounts. The interest getting from this bank account pays more than regular savings accounts. And you are allowed to write checks from money market accounts or you can also make purchases with a debit card. Opening money market accounts allow a six-per-month limit. Some banks reduce it to three. Therefore, these accounts are not used on a daily basis. If you only need to write checkings occasionally, they may be able to meet your needs.
What can you do from my savings accounts?
The six-per-month limit does not mean that you have to directly go to your bank to make payments in your savings accounts. Here are some ways that you could apply to keep your cash accessible.
Transfer to Checking
You can transfer all money you need to your checking account and use it from that account. These kinds of transfers are limited to six times per month if you do not spend in person or at an ATM. However, only with some little planning, you can get enough money each month. If you do not have a checking account, you should open one. Try a prepaid account first if you are unable to open an account at your bank or credit union.
There are no federal limits on how often you are able to withdraw cash from your savings account by using an ATM or teller.
Get a check
If using cash is not convenient and comfortable, you can have the bank print for your checks from your savings account. If you are the account owner and the check is paid to you, this transaction will not count against your monthly limit. Moreover, you can also request payment of a check to someone else, but you should check with your bank first. If it is authorized, you may need to sign the form and it will be included in your six transactions.
Can I write a check to “cash”?
The answer is yes. However, writing a check to”cash” can be risky. Because instead of the recipient’s company and legal name, it can be converted to cash or deposited by anyone holding it. Your parents will do this if they are unsure of the recipient’s legal name. Or it is a simple way to withdraw the money. Today, many banks do not allow a check written to “cash” because fraud may happen.
Writing a check can be a bit confusing if you are not getting used to it. However, it is important to balance your account, so you will not spend money that is really not there. Although you cannot write a check from your savings account, there are still online tools available to help you stay organized. Hope that with these above tips, you could find the most convenient way to write checks.