The Difference Between Checking, Savings, and CDs
April is Financial Literacy Month, a time to sharpen your money skills and build confidence in your financial decisions. At Bank of Hillsboro, we believe knowledge is power, and understanding the different types of bank accounts is one of the first steps toward stronger financial wellness.
Whether you’re managing everyday expenses, building your savings, or planning ahead, knowing the role each account plays can help you make the most of your money.
Checking Accounts- Your Everyday Spending Tool: A checking account is designed for frequent, day-to-day transactions like paying bills, making purchases, and receiving direct deposits.
Key Features:
- Unlimited access to your money with a debit card, checks, or online/mobile banking
- Low or no interest, depending on the account type
- Often includes tools for managing your budget and tracking spending
Best For:
- Everyday use
- Paying bills
- Making debit card purchases
- Receiving paychecks via direct deposit
Tip: Consider setting up alerts or using budgeting tools linked to your checking account to monitor spending in real time.
Click here to explore the flexible checking options available at Bank of Hillsboro to find one that fits your lifestyle.
Savings Accounts – A Safe Place to Build Your Emergency Fund: A savings account is meant for setting aside money you don’t plan to use daily. It typically earns interest, helping your balance grow over time.
Key Features:
- Earns interest on your balance
- Ideal for building short- or long-term savings
Best For:
- Emergency funds
- Saving for short-term goals (vacation, home project, etc.)
- Keeping funds separate from daily spending
Tip: Automate transfers from checking to savings each payday, it adds up quickly!
Bank of Hillsboro offers a variety of savings accounts designed to help you meet your goals faster, click here to explore which one is right for you.
Certificates of Deposit (CDs) – A Low-Risk Way to Grow Your Savings: A CD is a savings product that holds a fixed amount of money for a fixed period such as 6 months, 1 year, or longer at a locked-in interest rate.
Key Features:
- Higher interest rates than regular savings accounts
- Fixed term – early withdrawals may incur penalties
- Great for money you won’t need right away
Best For:
- Saving for future expenses
- Earning more interest on funds not needed immediately
- Low-risk, stable savings growth
Tip: Ladder your CDs—open several with different maturity dates to keep funds accessible while maximizing returns.
Check out the current CD rates at Bank of Hillsboro and see how your savings can grow over time.
Which Account Do You Need? (Hint: Probably All Three) Each of these accounts serves a different purpose, and using them together can help you manage your money more effectively:
- Checking for everyday use
- Savings for your financial cushion and short-term goals
- CDs for planned, longer-term savings
Together, they build a strong foundation for smart money management. At Bank of Hillsboro, we’re here to help you take control of your financial future, this month and every month. Whether you’re opening your first account or rethinking how you manage your money, we’ll help you find the right tools to support your goals. Visit your local branch or explore your options online. Let’s make it happen, together.