The minute you start getting your first paychecks, you are going to need a place to store that money because keeping it in your pocket simply is not safe. However, a quick stroll to any bank or financial institution might stir up confusion because you will see that there are various different accounts available, and different options and features available with each. A lot of people have asked the question, "What are the different types of bank accounts?" Answering that question may be hard because each bank will have their own, different types of bank accounts. Listed below however, is a brief overview of the main types of bank accounts.
A checking account is basically an account that allows an individual to deposit, withdraw and transfer money as much as he or she wants. The check is the primary resource that is utilized for using the deposited money; sometimes a check is even used to deposit money in another account. Most banks will also issue a debit/credit card that will allow literally 24 hour access to the money in an individual's bank account via an ATM (Automatic Teller Machine). A checking account is sometimes referred to as a standard bank account because most people sign up for this type of bank account as their regular bank account.
A savings account can be considered similar to a checking account, although a better name to describe a savings account would be a "limited checking account." The reason for this name being that with a savings account, one can usually deposit and withdraw money as they would with a checking account, but the number of withdrawals and deposits may be limited. The primary purpose of a savings account can be found in the name, it is a "savings" account, meaning that it is supposed to help an individual save money up for whatever reason. A lot of people will choose to have a savings account as well as a checking account so that they can manage their money and save a portion of it as well.
Another popular type of account that helps the term, "Put your money to work for you," come true is called a money-market account. A money-market account is basically an account that pays a significantly higher rate of interest on the money that is in an individual's account. However, a money-market account usually requires that a much higher minimum balance be kept in the bank account before interest can be earned.
The three types of accounts listed above are extremely common, but they are not the only ones. There are CDs (Certificates of Deposit) which is basically when a person deposits a certain amount of money and agrees to leave it in the bank for a specific timeframe; interest will be paid on this amount, causing it to grow until it is able to be withdrawn. More research on the different types of banking accounts on the web, simply use a popular search engine and you should find plenty of useful information.
A checking account is basically an account that allows an individual to deposit, withdraw and transfer money as much as he or she wants. The check is the primary resource that is utilized for using the deposited money; sometimes a check is even used to deposit money in another account. Most banks will also issue a debit/credit card that will allow literally 24 hour access to the money in an individual's bank account via an ATM (Automatic Teller Machine). A checking account is sometimes referred to as a standard bank account because most people sign up for this type of bank account as their regular bank account.
A savings account can be considered similar to a checking account, although a better name to describe a savings account would be a "limited checking account." The reason for this name being that with a savings account, one can usually deposit and withdraw money as they would with a checking account, but the number of withdrawals and deposits may be limited. The primary purpose of a savings account can be found in the name, it is a "savings" account, meaning that it is supposed to help an individual save money up for whatever reason. A lot of people will choose to have a savings account as well as a checking account so that they can manage their money and save a portion of it as well.
Another popular type of account that helps the term, "Put your money to work for you," come true is called a money-market account. A money-market account is basically an account that pays a significantly higher rate of interest on the money that is in an individual's account. However, a money-market account usually requires that a much higher minimum balance be kept in the bank account before interest can be earned.
The three types of accounts listed above are extremely common, but they are not the only ones. There are CDs (Certificates of Deposit) which is basically when a person deposits a certain amount of money and agrees to leave it in the bank for a specific timeframe; interest will be paid on this amount, causing it to grow until it is able to be withdrawn. More research on the different types of banking accounts on the web, simply use a popular search engine and you should find plenty of useful information.
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