No. of Recommendations: 2
"The feds limit the amount of fee free transactions from a savings account. - NO CITATION!!!

I always wondered why there is some grand distinction between a "checking" account and a "savings" account? As you point out, there seem to be different laws governing them. Some financial institutions will let you transfer funds to/from "checking" accounts but not "savings" accounts.

Why is this distinction made? There are checking accounts that pay interest. There are savings account that you can write checks against.

- progmtl | Date: 2/24/2014 1:43:40 PM | Number: 307942

Checking accounts are Demand Deposits<DD> and classified as M1 by the Federal Reserve System<the Fed>. Savings deposits are savings deposits and classified as part of M2 by the Fed.

The full definition of M1 is currency in circulation plus Demand Deposits.

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