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Banking

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Types of bank accounts

There are a variety account types and features to choose from in the banking category depending on your needs. Are you seeking convenience? Do you want to earn interest? Are sign up bonuses most important to you? To make these decisions, it’s helpful to understand the differences between the most common bank account types and the best choices out there.

Savings accounts

Opening a high yield savings account is the single best financial move you can make if you don’t already have one. You’ll earn interest on cash you have sitting on the sidelines and it’s one of the better options to store an emergency fund. Savings accounts are not designed for everyday spending with limits on withdrawals.

Checking accounts

A checking account is a deposit account opened at a brick-and-mortar bank, credit union, online bank, or through subsets like financial technology companies. Checking accounts offer access to your money for daily transactions, like paying bills. Paper checks and/or a debit card may be offered with this account type. You typically want both a checking and savings account with the latter earning interest and the checking account connected to your various accounts.

Everyone, including freelancers and businesses, may need a checking account to serve as their financial hub. Checking accounts include options designed best for kids, senior citizens, students, and specifics like rewards or competitive interest.

Certificates of deposit accounts (CDs)

CDs offer higher interest rates than most traditional savings accounts but also provide less volatility than alternatives like the stock market. They serve as a great option if you have a short-term savings goal coming up.

Money market accounts (MMAs)

A money market account is a type of savings account. Money market accounts may offer check-writing privileges, a debit card, but there also may be high deposit or balance requirements to acknowledge with that flexibility. They’re also subject to withdrawal limitations. Both money market accounts and high-yield savings accounts offer high interest than those offered by traditional savings accounts.

Hopefully this page can help you find the perfect account with the perfect bank for you!

 

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