You have a traditional checking account and wonder if writing a check is an option to access funds. Generally, no, as these accounts are designed to help you grow your money. That said, you can likely initiate cross-account transfers to access your money.
What is a Traditional Savings Account?
A traditional savings account is a type of bank account designed to help you save money while earning interest. Most banks and credit unions offer these accounts. They are easy to open and require only a modest initial deposit.
Key Features of Traditional Savings Accounts
Below is an overview of what you can expect from traditional savings accounts:
- Interest rates: They offer far lower annual percentage yields (APYs) than other savings options, including certificates of deposit (CDs) and high-yield savings accounts.
- Accessibility: You can make withdrawals at a branch (if available) or through an electronic transfer. Some banks also issue ATM cards to account holders, although there are often monthly withdrawal limits.
- Safety: Deposits of up to $250,000 held in savings accounts are generally protected by the FDIC or NCUA.
- Minimum balance requirements: Some savings accounts require you to maintain a minimum balance to avoid fees.
Common Uses for Traditional Savings Accounts
Consumers often use savings accounts to:
- Build an emergency fund for a rainy day
- Set aside cash to meet a specific financial goal
- Save for a large event, vacation or other big-ticket purchase
- Stash cash to avoid impulse spending
Can You Write Checks from a Traditional Savings Account?
You generally cannot write checks from a traditional savings account. This type of account is designed to save money and not for regular spending or transactions. Different rules and regulations, such as withdrawal limits and regulatory guidelines, further restrict your ability to use savings for immediate access to money.
Typical Restrictions of Traditional Savings Accounts
A traditional savings account typically does not allow you to write checks because its primary function is to save and earn interest on your money. Here are some other restrictions to be aware of:
- Transaction limits: Unlike checking accounts, savings accounts often come with limits on the number of withdrawals or transfers you can make in a month or statement period. Some banks may limit you to as few as six transactions during this window.
- No debit card access: There’s also a chance that you won’t receive a debit card for your savings account. This means you cannot easily access your funds for everyday spending. Without these conveniences, using savings for regular transactions becomes inconvenient and sometimes problematic.
Differences Between Savings and Checking Accounts
Checking accounts are designed for frequent transactions, so you’re free to write checks and use debit cards for purchases or to pay bills. On the other hand, a savings account is meant to store money and grow it over time through the accrual of interest. So, it typically doesn’t come with the same features as a checking account, and you won’t have the freedom to use a debit card or write checks. Keep in mind that some banks and credit unions provide ATM cards to make withdrawals from savings accounts.
For these reasons, savings accounts are not the best option for daily use. Instead, they should be viewed as a place to grow your funds with interest and keep them away from your other cash. However, a checking account is more suitable if you need regular access to your money.
Alternatives to Writing Checks from Savings Accounts
Linking Savings and Checking Accounts
You can easily link to other checking accounts to easily move funds. Most banks and credit unions allow you to do so through the online dashboard or via the mobile app to facilitate seamless online cross-account transfers. And since checking accounts come with debit cards, you can move funds from savings quickly and easily whenever you need access to cash.
Online Transfers and Bill Payments
Most banks and credit unions also let you set up online transfers and automatic bill payments to either send money to other accounts or to pay bills. Again, this feature is typically available through the online dashboard or mobile app and can be a viable option if you don’t have the ability to write checks from your savings account.
Using Money Market Accounts for Check Writing
Money market accounts are like a checking account on steroids. Not only do you get a debit card and check-writing privileges, but you also earn an attractive annual percentage yield (APY) on your money. So, this account essentially marries the key features of checking accounts and savings accounts while allowing you to maximize your earning potential and meet savings goals.
Plus, you can still write checks if you prefer to do so. But keep in mind that money market accounts typically require a higher opening deposit than regular checking or savings accounts. And you’ll also be required to maintain a certain minimum balance in most cases to avoid fees. Then, there’s the transaction limit that could put a cap on the number of checks you can write or withdrawals you can make each statement period.
Ways to Access Funds from a Savings Account
In-Person Withdrawals
If your bank or credit union has physical branches, you can visit a location to withdraw money.
ATM Withdrawals
Using an ATM is a convenient way to access your savings account at any time of day. You typically use a debit card to make withdrawals. Most ATMs allow you to transfer funds between accounts as well.
One advantage is that ATMs are widespread, making them accessible in many locations. Keep in mind that using an ATM outside of your bank’s network may incur fees.
Checking your bank’s ATM locations can help you avoid unnecessary charges. It’s also smart to know your daily withdrawal limit to manage your cash flow effectively.
Online and Mobile Banking Options
Many banks offer robust mobile apps where you can perform quick transfers or deposits. This option is ideal for those who prefer managing their finances digitally.
Pros and Cons of Each Method
Pros and Cons of Writing Checks from a Savings Account
Pros:
- Direct access to savings to make payments
- There is no need to transfer funds to access cash
Cons:
- Not an available option with most banks and credit unions
- Checks could take several days to clear your account
Pros and Cons of Linking Accounts
Pros:
- Seamless electronic funds transfers
- Quick access to your savings
Cons:
- Transfer fees apply with some banks and credit unions
- Potential caps on the number of transactions per statement period
Pros and Cons of Using Online Transfers
Pros:
- Offers an easy way to move funds
- It can be initiated through the online dashboard or mobile app
Cons:
- Subject to transfer limits for each statement period
- Connectivity issues could make it challenging to complete transfers
