#bank  The main difference between a Cheque (Checking) account and a Savings account lies in their intended use and features: 1. Purpose: A Cheque account is primarily designed for frequent transactions, such as writing cheques, making electronic payments, and withdrawing funds via debit cards. It offers easy access to your money for day-to-day expenses. In contrast, a Savings account is meant for accumulating and growing your money over time. It encourages you to save by offering interest on your deposits. 2. Transaction Limitations: Cheque accounts typically have no or fewer restrictions on the number of transactions you can make. You can write cheques, use debit cards for purchases, and transfer funds frequently. In contrast, Savings accounts often impose limitations, such as a monthly limit on withdrawals or a fee for exceeding a specified number of transactions. This encourages you to save and minimizes excessive use of funds. 3. Interest Rates: Cheque accounts generally offer little to no interest on the money deposited, as their primary purpose is to facilitate transactions. On the other hand, Savings accounts usually offer higher interest rates, allowing your money to grow over time. The interest earned is added to your account balance. 4. Minimum Balance Requirements: Cheque accounts may have lower or no minimum balance requirements, giving you more flexibility. Savings accounts often require a minimum balance to be maintained to avoid fees and receive the full benefits of the account. 5. Fees: Both account types may have various fees associated with them, such as monthly maintenance fees, overdraft fees, or transaction fees. The fee structure can vary between financial institutions and account types, so it's important to review the terms and conditions. In summary, a Cheque account is focused on day-to-day transactions with limited interest, while a Savings account is designed for saving and offers higher interest rates on deposits. ## Why Do Banks Has Two Types of Account? why Don't They Simply Merge into One? Are there Any History or Reason Behind? Banks typically offer multiple types of accounts, such as Cheque (Checking) accounts and Savings accounts, to cater to the diverse financial needs and preferences of their customers. There are several reasons why these accounts have distinct features and are not merged into one: 1. Customer Needs: Different individuals have varying financial requirements. Some customers prioritize easy access to funds for daily transactions, while others focus on saving and earning interest. By offering different account types, banks can provide tailored solutions to meet these specific needs. 2. Regulatory Requirements: Banking regulations may impose certain restrictions on account types. For example, Savings accounts may have limitations on transactions and require banks to hold a portion of the deposited funds as reserves. Complying with regulatory guidelines often necessitates maintaining separate account structures. 3. Operational Efficiency: By keeping account types separate, banks can efficiently manage and track various financial activities. Different accounts may have distinct systems, processes, and requirements for transactions, recordkeeping, and reporting. Having separate account structures can streamline operations and enhance efficiency. 4. Profitability: Banks generate revenue through different means. While Cheque accounts may incur costs to maintain and provide transaction services, Savings accounts allow banks to use customers' deposited funds to make investments and generate income. By offering Savings accounts with interest-bearing features, banks can attract deposits and use them for lending or investment purposes, ultimately driving profitability. 5. Customer Relationships: Offering a range of account options allows banks to establish long-lasting relationships with customers. As customers' financial needs evolve, they may require different account types at different stages of their lives. By catering to these evolving needs and providing a comprehensive suite of services, banks strengthen customer loyalty and retention. > [!info] > In hong kong, there is no separation of cheque account and saving account. we only has one type of account ## How to Withdraw Money 1. transfer your money from saving to cheque 2. withdraw it ## How to Etransfer 1. create a contact of another person in your banking app, you need his/her email 2. send money to him > [!info] > set up auto deposit management, then others don't need to set security question and you don't need to answer