Lesson · 8 min
Checking vs. savings
One for spending, one for storing. Pair them.
Checking accounts are for money you'll spend this month. Savings accounts (especially high-yield ones) are for money you're storing. Auto-transfer to savings on payday so it happens before you notice.
Vocab
- APY
- Annual percentage yield — interest earned, including compounding.
- FDIC insured
- Protected up to $250,000 per depositor per bank if the bank fails.
Quick check
1. You'll pay rent from…