Question

What's the difference between a checking account and a savings account?

A. A checking account has fewer fees.

B. A savings account comes with a debit card.

C. A savings account earns interest.

D. A checking account comes with a credit card.

Answer 1

Answer:

D. A checking account comes with a credit card.

Explanation:

A checking account is opened to facilitate regular bank transactions such as deposits, withdraws, cash transfers, payments, among others. There are no limits to the number of transactions that one can perform per period. Bank's fee and charges are applicable per transaction. To facilitate payments, withdrawals, and deposits, banks provide debit cards to customers.

Savings accounts are designed to help customers accumulate funds for future use. Banks limit withdrawals and offer interest payments to encourage customers to save. Savings accounts have fewer charges and don't come with debit cards.