Which statement correctly describes the difference between a checking account and a savings account, and when to use each?

Which statement correctly describes the difference between a checking account and a savings account, and when to use each?

• A. Checking is for daily transactions; savings is for short- to medium-term goals and interest growth; move surplus funds to savings.
• B. Savings is for daily transactions.
• C. Checking earns higher interest than savings.
• D. There is no difference between them.

Answer: (A)