6 Benefits of Linking Your Checking and Savings Accounts
March 20, 2025
Combining Accounts for Benefits Pros and Cons
Managing your money doesn’t have to be hard. One way to make things easier is by using services that link
your checking and savings accounts. This means connecting the two accounts so you can move money between them quickly and take advantage of helpful tools like automatic transfers or automate savings.
Learn about the different linked services, the benefits, and how to link them. Find out why linking your checking and savings accounts could be the right choice for a bright financial future.
What Does Linking Your Bank Accounts Mean?
Linking your accounts lets you transfer money between them instantly. If you run low on money in your checking account, you can use funds from your savings without delay.
And, if you want to save a little from each paycheck, you can set up automatic transfers to grow your savings over time. When your accounts are linked, they work together.
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Are There Risks to Linking Your Checking and Savings Accounts?
While linking accounts is helpful, it’s important to know the risks.
Here are a few things to watch out for:
Security risks.
The temptation to spend.
Possible fees.
If someone gains access to your online banking, they could potentially see and possibly move money. Protect yourself with strong passwords and two-factor authentication. It may also be helpful to learn how to recognize phishing scams.
With easy access to your savings, you might dip into it more than you should. So, try to only transfer money when you really need to.
Some banks charge fees for certain transfers or transfers from savings for overdraft protection. Be sure to check your bank’s policies before linking accounts.
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The Benefits of Linking Your Checking and Savings Accounts
Linking your accounts offers many benefits. Here are the top reasons people choose to link their checking and savings accounts.
1. Automatic Transfers from Savings for Overdraft Protection
About 32% of people paid at least one overdraft fee last year.[1] Linking your checking and savings accounts can help avoid these fees by moving money automatically from savings to cover any shortfalls in checking.
Overdraft protection is one of the best reasons to link your accounts. If you accidentally spend more than what’s in your checking account, you authorize your bank to automatically pull money from your savings to cover it. This may keep you from paying overdraft fees or having transactions declined or items returned unpaid. Some banks charge fees for these transfers. Be sure to check with your bank.
2. Fast and Easy Transfers between Bank Accounts
With linked accounts, you can move money between checking and savings accounts in seconds. This may help if you’re short on cash or want to make a quick payment. You can also schedule regular transfers to save money without even thinking about it. For example, you could set up a transfer every payday to move a set amount into savings accounts. Over time, those small transfers add up.
3. Automatic Savings
Many banks let you automate your savings when your accounts are linked. You can set rules to transfer a certain amount of your paycheck to savings or round up purchases to the nearest dollar, with the amount in excess of the purchase price would be transferred from your checking account to your savings account. This may make saving
easier and take away the stress of trying to remember to save on your own.
4. Better Money Management
Linked accounts make tracking your finances simpler. When you can see both accounts in one place, it may be easier to understand where your money is going and plan your budget. For example, you might notice you’re spending more than you thought and decide to cut back. Or you could see you have enough savings to pay off a small debt.
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5. Streamlined Budgeting
When your accounts are linked, budgeting becomes easier. You can move money into savings accounts for big goals, like buying a car or taking a vacation while keeping track of everyday spending from your checking account. Connected accounts can help you make changes within your budget more easily to meet your monthly goals.
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6. Emergency Funds on Hand
Emergencies happen, and when they do, having your accounts linked can help. If your car breaks down or you face an unexpected expense, you can likely transfer money from savings to checking right away. Quick access to an emergency fund may be a lifesaver in tough situations.
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How To Link Your Bank Accounts To Make Transfers Between Them Online
Linking your accounts is simple.
Here’s how you can do it:
Go to your bank’s website or open their mobile app. Look for the option to link accounts.
Select your checking and savings accounts. Some banks automatically link accounts if you open them together.
Your bank may ask you to confirm account details or agree to terms. This step ensures that your accounts are linked securely.
Once your accounts are linked, you can test it by transferring a small amount between them.
Other linked checking and savings services may be available online as well such as setting up automatic set amount transfers between your accounts. However, some services such as Round-up Savings or protection from overdrafts with a transfer from a Savings Account might need assistance in setting up on accounts. If you need help, your bank’s customer service team can guide you through the process and discuss any fees that may apply to the services.
Is Linking Your Bank Accounts Right for You?
Linking your accounts works well for most people, but it depends on your needs. If you like convenience and want better control over your money, linking is a great option. It’s also helpful if you’re trying to build savings or avoid overdraft fees.
However, if you’re worried about overspending, you might need to set boundaries to avoid transferring money too often from savings accounts. For example, use balance alerts on your checking to remind you when you’re about to dip into savings or a balance alert to remind you if your savings dips below a certain dollar amount. These are some of the savings and checking account benefits of linking accounts.
Choose the Right Account Setup with Centier
Linking your checking and savings accounts is an easy way to manage your money and save time. With benefits like automatic overdraft protection transfers from savings, fast transfers, and automated savings, it’s a smart choice for anyone looking to stay in control of their finances.
If you’re ready to link your checking and savings accounts, start by logging into your bank’s website or contacting customer service. Centier Bank offers tools to help you connect your accounts and make the most of your savings.
Ready to start on the path to a brighter financial future? To learn more about your options, schedule an appointment, or speak with an expert, reach out to Centier today.
Sources:
[2] https://www.incontext.indiana.edu/2011/mar-apr/article1.asp
