Different Types Of Bank Accounts
When it comes to different types of bank accounts, it can be overwhelming since not all of them would meet everyone's needs. However, at least one or more might be able to work in your case.
- Checking account. This is just a regular account where you put your money for different purposes in, such as for paying bills. However, some banks have a specific amount of money that has to be deposited and in some cases, you have to be actively using the account to avoid paying monthly fees. It is one of the different types of bank accounts to use.
- Savings account. This is used to help you save some money for emergencies. But in some banks, they do charge you if you do not have a certain amount of funds in the account. You will not accumulate much interest, but it is one of the different types of bank accounts. You can decide to get an online savings account so you can easily keep track of how much you have saved up. In some situations, you can even close your savings account if you can't accumulate a certain amount each month.
- Money market account. Although they do require you to deposit more money, you can earn higher interest here compared to the regular savings account. Although each bank is different, it is one of the common types of bank accounts to open up if you want higher interest. They do charge you a fee, and you only get a certain number of checks to use each month.
- Certificates of deposit (CD). It is a type of investment that banks offer to their customers. However, even though this is one of the different types of bank accounts, this will not get you rich. In order to open a CD, you have to have at least a thousand dollars. You earn a small interest each year from it. Just make sure that you let it mature. Otherwise, you would end up paying fees that would eat up your profits.
- Traditional and Roth IRA. Banks offer these two options of IRA which you can choose from. The customers can choose to start a traditional or a Roth IRA. However, each banks will let you know how much you need to start it up. It is an egg to add for investing purposes as well.
Posted on: Jul. 19, 2010