6 Benefits of Linking Your Checking and Savings Accounts
Last Updated: March 20, 2025
6 Benefits of Linking Your Checking and Savings Accounts
While some banks and credit unions open a checking account along with a savings account, some do not. And, linking bank accounts can make banking easier. Some of the benefits, like quick transfers and setting up auto overdraft protection from savings to checking, can help you manage and control your money more easily.
The more you know, the better choices you can make with your money. Learn about bank account linking advantages and how they can impact your personal finances.
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 automating 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 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 Bank Accounts
Linking your accounts offers many benefits. Here are the top bank account linking advantages you might want to leverage.
1. Transfers from Checking Account to 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.
Different banks charge various fees for these transfers. Be sure to check with your bank.
2. Fast and Easy Transfers Between Internal or External Bank Accounts
When you link bank accounts, you can move money between checking and savings accounts easily online. You can always make transfers between internal savings and checking at the same institution through your digital banking, telephone banking, or by calling your bank...but some banks even allow you to link external accounts held at another banking institution to be able to transfer between those external and internal accounts through digital banking online. 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 money transfer every payday to move a set amount into savings accounts. Over time, those small transfers add up. Just be sure to keep track of where you move your money.
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, you can round up purchases to the nearest dollar. In this case, the amount in excess of the purchase price would be transferred from your checking or savings account. So, instead of $6.72 coming out of your checking account for that coffee, $7.00 comes out, and the $0.28 goes automatically into your savings. This can make saving easier and take away the stress of trying to remember to save on your own.
4. Better Money Management
A linked savings account can 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 if 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 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, and be sure to double-check the account numbers. 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.
Best Practices for Secure Bank Account Linking
Bank account linking may offer a ton of benefits, but taking appropriate security measures comes first. Link your accounts wisely with these security best practices.
Keep Your Passwords Strong & Unique
Creating a strong password for your bank accounts takes more than random characters. Your login information should be hard for hackers to guess but easy for you to remember.
Avoid common passwords like “123456” or “password.” Skip personally identifiable information like your name, birthday, or address in login credentials. And, never use your account number or other account information in your password.
Instead, use random combinations or unique passphrases. Make your password at least 12 characters long. Mix uppercase and lowercase letters, numbers, and symbols for stronger protection.
When linking bank accounts with the same bank, you may only need one password. For other financial institutions or third-party apps, choose distinct passwords for more security.
Enable Two-Factor Authentication
Two-factor authentication (2FA) adds a second step to logging in to your bank accounts. This measure can make linked bank accounts much safer. After you enter your password for a checking account or savings account, you confirm your identity with something else. This could be a one-time code, biometric verification, or app approval.
Whether you link an account with another at the same bank or connect to an external bank account, 2FA may be helpful. It can help reduce data breaches and keep your information secure across financial institutions.
Monitor Accounts Regularly
Check your bank account balances and transfers each week, not just when you transfer funds or to track spending. Do this whether you link bank accounts or not. If your bank allows, you can set alerts for low balance notifications, late charges, large withdrawals, new payees, or failed logins. Read your statements and flag odd fees right away.
If you notice anything off, tell your bank immediately. This can help you keep a simple log of monthly moves and maintain any particular balance you might need. Also, be sure to monitor for minimum balance requirements to avoid low-balance fees.
Quick action can help you prevent data breaches and keep your records accurate. Consider fraud monitoring systems to watch for data breaches.
Avoid Over‑Linking Multiple Banks
Link only the accounts you truly use because each extra link can add risk. Be sure to remove stale connections after you switch between third-party apps or different banks. This is especially important when you connect external bank accounts or use many finance apps.
When you have multiple accounts linked to external accounts, you have more channels for scammers to find. This can potentially lead to data breaches or identity theft. Fewer doors mean fewer ways in.
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 account to remind you when you’re about to dip into savings, or a balance alert to remind you if your savings dip 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, automatic payments, 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.
Frequently Asked Questions
Is linking bank accounts safe?
Yes, it's generally safe, even when you link external accounts, as long as you use secure tools from your financial institution(s). Choose banks that offer 2FA and an encrypted connection. Confirm FDIC coverage with the Federal Deposit Insurance Corporation. You should still use alerts and check account activity often.
How long do transfers take between linked accounts?
When you transfer funds after you link your bank account with an account at the same bank, your money usually moves the same day. Transfers to external accounts may take 1-3 business days. Some bank and third-party apps offer instant or same-day options for an added fee. Check with your financial institution for the exact cost for the type of transfer you will make.
When should you link your bank accounts?
Link your bank accounts when it helps your personal finance plan.
Some examples include:
- You want to automate savings between a savings and a checking account.
- You need to pay cards from multiple accounts.
- You'd like to set overdraft protection.
You can also link your bank to route direct deposit or to support a linked account at the same or different financial institutions.
Does linking bank accounts affect my credit score?
No, when you link a bank account to another, it does not impact your credit, even when using online banking. This is because they do not trigger a credit inquiry. Payments 30 days or more past due would be reported to the credit bureaus, and that would negatively impact your credit score. So, try keeping a cash buffer in savings and linking your savings to your checking for emergency automatic overdraft transfers to avoid missed payments.
What should I do if a transfer fails between linked bank accounts?
First, check the status in your app. Then, call your bank before retrying the transfer. This helps prevent duplicate transfers that could cause overdraft or low balance fees. Confirm the external account and routing details with support. If the transfer was external, ask support to trace the ACH. If needed, use another bank account to temporarily cover any charges.
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