Getting started in personal finance involves opening a bank account with an entity of your choice. in Ecuador, The number of people with bank accounts is 8.2 million, or 64.2% of people over the age of 15.

When opening a bank account, the most common options They are a savings account and a current account.therefore, it is essential to know the differences between each so that you can choose the one that best suits your needs and projects.

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What is a checking account?

The current account is a thought for natural or legal persons who need to do transactions easily and in a short time. The purpose of this account is to provide liquidity. These accounts They are used for daily money management.as they allow you to enter or pay immediately by checks.

The main advantages of opening a current account:

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What is a savings account?

In a savings account, you can deposit money more safely, earn interest on savings and you will have a debit card with which you can make purchases in the country, online or abroad. As a rule, it is used by natural persons.

This account is designed to help create a savings system, i.e. save money while generating benefits. This is a type of account generally used for commercial and business transactions.

The differences are small, in short, a savings account is used to store money for the medium term and with the advantage of earning interest, and a checking account is used for daily money management.

Can you have two accounts?

Each account has its own advantages.

The savings account is intended for people whose goal is to save in the medium term. It has interest rates and makes monthly returns on the existing balance. Although it does not allow overdrafts, with fewer tools the cost of maintaining an account will be lower.

An entrepreneur who has a trade could keep both accounts and this would enable him to manage his personal and business finances separately.

An individual can use a checking account to make certain monthly payments, writing a check for each transaction. To do this, you must have sufficient funds in your checking account to cover the value of the cashed checks.

The current account offers no interest or yield. Enables overdrafts, a financial institution can transfer money without funds in the account. This money must be deposited within a maximum of 30 days. Its maintenance costs are also higher.