What's the difference between these bank accounts??

Question

What's the difference from having a savings account and ATM card vs. having a checking account and debit card?

(And can a minor have a checking account WITHOUT her parents being able to access the account?)

Answer 1

These questions can be answered appropriately via the telephone. This way, the personnel at the bank can't see whom they are speaking with. If, when asking questions, you have someone who doesn't know anything, immediately request a supervisor. You can get the correct answers without the 'block' that you probably have experienced when trying to make 'positive' moves. I wish you success. Peace!

Answer 2

An Atm card is used to withdraw money from your account at certain ATM machines and places that accept payments on the ATM network.  Savings accounts usually earn a small amount of interest.



Checking accounts allow you to write checks backed by the money in the account.  They usually do not pay interest unless you have a special checking account with a lot of money in it.  A debit card (sometimes called a check card) is usually issued with a Mastercard or Visa logo and is accepted anywhere Mastercard or VIsa is accepted.  But instead of borrowing the money and paying interest as you would if it were a credit card, it simply takes the money out of your checking account at the time of purchase.



I think an adult must be on the account until you turn 18, but I don't think it has to be a parent.

Answer 3

Using a savings account you are expected to save. If you start using a savings account to pay bills from, you will excede the allowed amount of withdrawals and be in violation of federal regulation D which severly limits how many withdrawals you can make monthly from a savings product.

Using an ATM card with your savings account can be used at most stores using a pin number, & can withdraw from the atm.

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Having a checking account you can get a debit card which usually has the Visa symbol on it and would be accepted anywhere Visa is accepted online, stores, restraunts,most any place. But debit cards are used IN PLACE OF checks. The money comes directly out of your checking account. If you forget to write down a purchase you will get charged an overdraft fee if you spend more than you had in the account.

Under the Uniform Gift to Minor Act, a minor can be on an account but only the guardian can take money out of the account till the child turns 18, then all the money is changed into the minor's name & they become the primary owner.

The reson most banks do this is, because a minor can not be legally held accountable or enter into a contract. They cannot be prosecuted if they run up bunches of overdrafts or money by the banks so since they can't be prosecuted till 18 that is the legal age when they are considered responsible for their money. Then the bank can come after YOU if you mess up the account. Most banks will allow the minor to cash their pay check against the account, but if you make a deposit, only the guardian can take it out.

Answer 4

I dont think you're allowed your own account until you're 18, but I could be completely mistaken about that...

The difference between a savings account with an ATM Card and a checking account with a debit is that the checking account is pretty much like having cash, and a card and a book of papers that make it easier for you to spend. A savings account is usually meant for "savings"...and not money to spend every day, however it comes with the ATM card in case you want to draw on your savings.