Pick the account for how you use money, not for how it was advertised.
Not all accounts cost the same
A checking account is where most household cash flow lives: income arrives, bills leave, and the balance rises and falls between paydays. A savings account is where money sits that you do not need this week. Both come with terms you agreed to when you opened the account, and those terms vary more than most people realize.
Monthly maintenance fees range from zero to fifteen dollars or more. Some accounts waive the fee with a minimum balance or direct deposit. Some charge for paper statements. Some charge for using another bank's ATM. Some pay interest; most checking accounts do not. The differences add up over a year, and the cheapest account is not always the best fit for how a particular household uses money.
Banks versus credit unions
Banks are for-profit institutions. Credit unions are member-owned cooperatives. Both can offer checking, savings, direct deposit, and online access. Both can be federally insured, but by different agencies (FDIC for banks, NCUA for credit unions). The practical comparison comes down to four questions: what does this account cost me each month, can I get to my money when and where I need it, does it do what my household actually needs (online bill pay, mobile deposit, joint access), and is it federally insured (FDIC for banks, NCUA for credit unions). An account that scores well on all four is a good fit regardless of whether the institution is large or small, brick-and-mortar or online.
The best account is the one whose terms you have read. The worst is the one whose fees you discover after the fact.
What the action step builds
You will review the terms of every account your household uses. This becomes the account-review section of your Household Money Reset.
The reading for this module
This reading covers account selection. Modules 6 and 7 cover operations and insurance from the same page.
Review your account terms.
Find the fee schedule or account disclosure for every checking and savings account your household uses. For each one, record: the monthly fee (and how to avoid it), the minimum balance, the ATM network, and whether you know the overdraft terms. If you are paying a monthly fee you could avoid, note the waiver method.