Most savings accounts can’t be used to pay bills — but there are exceptions.
Money market accounts and interest-earning checking accounts let you earn interest on your money while giving you access to ATMs, debit cards and online banking.
Can you buy things with a savings account?
Some vendors do not process ACH transactions, and if you do not have a money market you cannot make a purchase using a debit card. However, if you have linked your savings account to your checking account for overdraft protection you can indirectly make a purchase from your savings.
Can you direct debit from a savings account?
It’s not usually possible to set up a direct debit from your savings account to cover ongoing expenses or bills, as savings accounts are structured around growing your wealth by earning interest on regular deposits, and discouraging withdrawals.
Can you use a savings account like a checking account?
Checking accounts are better for everyday transactions such as purchases, bills and ATM withdrawals. They typically earn less interest — or none. Savings accounts are better for storing money and earning interest, and because of that, you have a monthly limit on what you can withdraw.
Can a bank take money from your savings account?
Under federal law and regulation, financial institutions cannot do a setoff of money in your account to cover missed consumer credit card payments that you owe the institution (unless you previously authorized it to pay your credit card through automatic withdrawals from your account).