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There are many types of bank accounts for consumers to choose from and each will be able to provide benefits for his or her circumstances.
Checking Account
A checking account offers a quick and convenient way for people to access their money as often as they need. You cannot earn interest with most checking accounts, however.
Savings Account
A savings account offers a simple, hassle-free way to save money. Banks usually set a minimum balance to open and/or maintain these types of bank accounts. The benefit of a savings account over a checking account is that money in the account accrues interest. The downside is that the number of allowable transfers or withdrawals is limited.
Money Market Account
A money market account combines the benefits of a checking account and a savings account. You can withdraw funds from the account, and you benefit from a high interest rate. Like other types of bank accounts, money market accounts generally require a minimum balance to open and maintain the account. Some banks limit the number of transfers you can make with a money market account however.
Certificate of Deposit (CD)
A Certificate of Deposit offers bankers a way to save money for a specified term, with a specified interest rate. The more money you deposit and the longer the term, the higher your interest rate will be. You may not withdraw funds from most CDs until the account’s term expires.
4 Types Of Bank Accounts Explained
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