Why separate checking and savings?

All banks offer 4 basic types of FDIC covered accounts. Checking, Savings, Money Market, and CDs. Checking accounts (usually) earn lower interest and offer ease of use (checks, checkcards, bill pay, etc). Savings and Money Market accounts usually earn higher interest (relative to checking accoutns) but are not as easy to use. CDs offer (usually) the highest fixed rate interest with almost no use of the funds for a period of time.

My question is this. Why do banks not offer a checking account with savings/money market type interest rates? As a consumer, if a bank offered that would you still want to separate you checking and savings into 2 different accounts?

I ask this because we are considering doing just that.

Increase to FDIC limit long overdue

In case you hadn't noticed, part of the bailout/rescue bill was to increase the amount of FDIC coverage from $100,000 to $250,000 which went into effect on 10/3. It has been at $100,000 for nearly 30 years and had not even kept up with inflation so the increase is long overdue.

Does it effect the average person? Not really, but it does instill some much needed confidence in the banking system.