Banking seems like a simple business, but it is more complicated than most think. It is important to remember that you do not have money in the bank. When you give your money to a bank, you are lending them your money. Toi make money on your money, they lend it to someone else at a higher price (interest rate).
People use numerous strategies to grow their money over time, but the first step in that journey is almost always the same: setting up a checking account and a savings account at a financial institution.
In this infographic, we clarify the difference between the two accounts for beginners, and provide some basic tips on how to safely manage your money day-to-day.
Think of a checking account as an account for now, and a savings account as an account for later. You can move money with ease between both accounts depending on what you need it for, and when.
It is important to make sure your finances are protected, by managing your account from all directions:
- Check your banking activity regularly
- Keep all receipts and compare them with your monthly statement
- Keep your account and card details private to guard your data
- Don’t store online banking login details on your devices in case of theft
- Sign up for account alerts in case of suspicious activity
- Set a strong password for online banking and update it frequently
Understanding the purpose of each of your accounts will allow you the control to grow your money in the long run, and more importantly, keep it safe.
