Having financial products that help you manage your money is the best way to achieve your goals . By having your financial resources in a bank, you are not only insuring them, but you can put them to work, receive interest and even build a credit history that supports you to achieve bigger goals .
Among all the banking offer, you will find savings and current accounts . What is each one for? We tell you in this post!
Let's start with savings accounts
A savings account is aimed at individuals who want to keep their money safely and in the medium term. Having this account is very easy; You only have to be 18 years old and present your identity card, to have your money when you need it, inside and outside the country . Its main benefit is that every month it generates interest on your savings, depending on the balance you have. With the savings account you can:
Best of all, you can manage your money from wherever you are and with all the comfort through Mobile Banking or Web Banking . And if you are from the old school, you also have physical channels such as agencies, ATMs and Mi Vecino points.
What is a checking account?
The checking account is designed for natural or legal persons who need to make transactions easily and in the short term. The purpose of this account is to provide liquidity and it is ideal if you or your business need to make recurring payments, such as the payroll discount.
In general, checking accounts are used to manage money on a daily basis , since they allow you to enter or make payments immediately through checks , without having to have the money immediately.
And what do you need to open a checking account? Only your identity card and a copy of the form of a basic service , where the address of your residence of up to 2 months is stated.
How is a savings account different from a checking account?
The differences between a savings account and a checking account are quite significant and it is important to know how to differentiate them to know what benefits each account offers, since they have different purposes.
Is it better to have a savings or checking account?
Each account has its own benefits that fit your needs and purposes and what you plan to do with your money . For example, if you have a business and need to pay for supplies or make daily transactions, a checking account will be your best ally. But if your thing is to save money and accumulate interest, do not hesitate to have a savings account!
Should you have both accounts?
As we already mentioned, each account has its advantages, but if you are a business owner, having both accounts will make it easier to:
- Manage personal finances and those of your business separately. Thus, you can maintain control of your money in the accounting record.
- Get approved for credit company, since it will be easier if the bank knows that your business has the capacity to repay a loan.
- declare taxes of your business separately from your personal finances at the end of the year.