A savings account and a checking account do different jobs, and using one as the other costs you money
You can physically withdraw money from a savings account and spend it, so technically you could use it like a checking account. But your bank will charge you fees if you do. Federal rules limit how many times per month you can transfer money out of a savings account — historically six times, though that limit was suspended during the pandemic and varies now by bank. Each transfer over the limit costs money: typically $10 to $35 per excess transaction. A checking account has no such limit. If you write checks, use a debit card, or set up automatic bill payments from a savings account, you will trigger these fees.
The second problem is access. Savings accounts are designed for money you are not touching regularly. Many banks make it harder to withdraw from savings — no debit card, no checks, slower transfers to other accounts. Some online banks require you to move money to a linked checking account first before you can spend it. A checking account is built for daily spending: debit card, checks, bill pay, all when ready or nearly when ready.
The third reason is that savings accounts usually pay interest, and checking accounts do not. If you treat your savings account as a checking account and drain it constantly, you lose that interest. It is small — often less than 1 percent per year — but it is real money you are giving up.
Key Takeaways
- Federal rules limit transfers out of savings accounts to a certain number per month, and your bank charges $10 to $35 for each one over the limit.
- Checking accounts have no transfer limits and are designed for daily spending with debit cards, checks, and bill pay.
- Savings accounts often pay interest on your balance, which you lose if you constantly withdraw the money.
- Using a savings account as a checking account will cost you in fees and lost interest within the first month.
How the transfer limit actually works
The six-transaction limit came from a Federal Reserve rule that applied to all savings accounts. It was meant to encourage people to keep savings separate from spending money. The rule was suspended in April 2020 and has not been reinstated, but individual banks can still enforce their own limits — and most do.
The limit counts transfers out of the account, not deposits in. A transfer means money leaving the account: a withdrawal at an ATM, a transfer to another account, a bill payment, or a check you write. Some banks count transfers differently — for example, a single bill-pay session might count as one transfer even if you pay five bills. Read your account agreement or call your bank to know exactly how they count.
Once you hit the limit, the bank charges a fee for each additional transfer that month. The fee resets on the first day of the next month. If you use your savings account like a checking account and make ten transfers in a month, you will pay fees for the four transfers over the limit. Do that for three months and you have paid $120 to $420 in fees alone.
Why checking accounts have no limits
A checking account is a transaction account, designed for frequent movement of money. You can write unlimited checks, make unlimited debit card purchases, and set up as many bill payments as you need. Banks expect you to use checking accounts this way and price them accordingly — many charge a monthly fee, but that fee covers unlimited transactions.
The difference is regulatory. Savings accounts are treated as savings vehicles and have restrictions built in. Checking accounts are treated as payment tools and do not. If you need to move money in and out of an account regularly, you need a checking account, not a savings account with a workaround.
The interest you lose by draining a savings account
A high-yield savings account currently pays between 4 and 5 percent annual interest, depending on the bank and the current rate environment. A regular savings account at a large bank might pay 0.01 percent. A checking account pays zero.
If you keep $5,000 in a high-yield savings account and never touch it, you earn roughly $200 to $250 per year. If you treat that account like a checking account and withdraw the money constantly, your average balance drops — maybe to $1,000 or $2,000 — and you earn $40 to $100 instead. You also pay transfer fees on top of that lost interest.
The math is worse with a regular savings account, but the principle is the same: a savings account is supposed to sit there and grow. If you need the money to move around, it should not be in savings.
What happens if you ignore the limit
Banks do not usually close your account after one month of excess transfers. They charge the fee and let you continue. But if you repeatedly ignore the limit — say, six months of over-limit transfers — the bank may freeze the account, convert it to a checking account (which changes the interest rate and may add a monthly fee), or close it entirely and report you to ChexSystems, a banking history database that makes it harder to open accounts elsewhere.
The bank will warn you before taking these steps, usually by email or letter. But the fees start when ready, so you will lose money long before the account is closed.
When a savings account makes sense for regular spending
Some people use a savings account as a secondary account for a specific purpose: a sinking fund for car repairs, a buffer for irregular bills, or money set aside for a planned purchase. If you touch this account once or twice a month, you might stay under the transfer limit and avoid fees. But this only works if you are disciplined about not using it for daily spending.
A better approach is to keep a checking account for daily spending and a separate savings account for actual savings. Link them at the same bank so transfers between them are when ready and free. This way you get the unlimited transactions you need and the interest you want, without paying fees.
The right account for each purpose
| What you are doing | Use this account | Why |
|---|---|---|
| Daily spending, bills, paychecks | Checking | Unlimited transactions, debit card, checks, bill pay |
| Money you are saving for later | Savings | Earns interest, separate from spending money |
| Emergency fund you might need fast | High-yield savings | Earns 4–5% interest, transfers to checking in 1–2 days |
| Money for a specific goal in 1–2 years | Savings or money market account | Earns interest, fewer transactions needed |
Frequently Asked Questions
Can I use a savings account if I only spend money once a week?
You might stay under the transfer limit, but you are still losing interest and access. A checking account costs the same or less and gives you unlimited flexibility. If you want to save money, keep the savings account separate and use checking for spending.
Do all banks enforce the six-transaction limit?
No. Some banks have removed the limit entirely, especially online banks. Others enforce it strictly. Check your account agreement or call your bank to find out their specific policy. Even if your bank does not enforce a limit now, they can add one later.
What if I need to move money from savings to checking to pay a bill?
That transfer counts against your limit if it is a separate transaction. If you do this regularly, you are using your savings account as a checking account and will pay fees. Open a checking account instead and link it to your savings account for straightforward transfers.
Will using a savings account as a checking account hurt my credit?
No, it will not affect your credit score. But it will cost you in fees and lost interest, and repeated violations may result in the bank closing the account and reporting you to ChexSystems, which can make it harder to open accounts at other banks.
Is there a type of savings account with no transfer limits?
Money market accounts sometimes have fewer restrictions than savings accounts, but they are not the same as checking accounts and still may have limits. If you need unlimited transactions, you need a checking account. Use savings for actual savings.