If I plan to make all my purchases with a credit card (to build credit and earn points) and will have a savings account (to earn interest) where my checks will be deposited, would I still need a checking account for some reason?

  • AntiqueSunrise@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    What you want in your business is an operating account. Whether this is classified by the bank as a “savings” account or a “checking” account is a bank regulation issue, so just choose an account that matches your needs. However, most businesses at some point need to process bank transactions at scale, whether those are deposits, ACH transfers, wire transfers, whatever. It happens when you fund payroll, pay sales tax or payroll tax, receive payments or refunds, pay a loan, or engage in any transaction where a credit card won’t work. If your bank has transaction limits on savings accounts just be mindful of that.

    Some lenders might not look at accounts classified as savings accounts when considering your creditworthiness, which is also something to consider.

  • puddletownLou@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    If you have a business, you need a business checking account to be legit, so I don’t see why a savings account wouldn’t work as long as it’s a business savings.

  • bayareamastermind@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    There’s zero downside to having a checking account. Savings accounts typically have a limited number of transactions allowed since they are, well, savings accounts, and not operating/checking accounts.

    • Desk_Quick@alien.topB
      link
      fedilink
      English
      arrow-up
      1
      ·
      1 year ago

      Our business checking at the same bank has instant transfer from our deposit account. You never know when some random is going to ask for an actual paper check.

  • Way2trivial@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    interest accruing savings account often/usually have limits on the numbers of withdrawals allowed per period
    (month, quarter)

  • harmonykt@alien.topB
    link
    fedilink
    English
    arrow-up
    1
    ·
    1 year ago

    This is an interesting idea that I didn’t consider. Unfortunately I don’t have an answer for you but hopefully someone does, because now I’m interested as well.