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.
What can you use a savings account for?
Let’s dive into them.
- 1) You’ve reached your money goal for an item.
- 2) There is an emergency.
- 3) You have money in your emergency fund and separate savings.
- 4) Do not use savings for debt.
- To save more money or build back up your savings:
- 1) Have separate saving accounts.
- 2) Use a credit union or online bank.