Question by Genevie: What is the difference between an automatic draft (for online bill payments) and ACH payments?
I have recently set up a very basic savings account at my mothers credit union and yesterday when I called the credit union to ask if I could set up online payments to come out of this account, the teller told me that this account only accepts ACH payments. What does that mean?

Best answer:

Answer by Go with the flow
She might have meant ACH deposits only.
Like direct deposit from your employer.
All savings accounts I know do not allow debits to pay your bills.
For this, you would need a checking account.

*That’s the difference between a savings account and a checking.
If you could pay bills with a savings account, then there would be no difference between the two accounts.
They would both be called checking accounts.

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