Yusra3
VIP Contributor
There are many types of bank accounts, but they all serve the same purpose: to help you manage your money.
When you open a bank account, you're giving a financial institution permission to hold your money for safekeeping. The type of account you choose will depend on what kind of account you want and how much money you want to keep in it.
Here are some of the most common types:
1. Checking Account: This is the most common type of bank account. It allows you to write checks, make withdrawals and deposits, access your money electronically, and pay bills online. This type of account also gives you access to automated services such as billpay and direct deposit.
2. Savings Account: Savings accounts are good for long-term savings goals such as retirement or college tuition payments. They also offer interest on your money while it sits in the account earning interest.
3. Money Market Account: These accounts are similar to checking accounts with the exception that they do not allow you to make withdrawals or deposits at will but do offer higher interest rates than regular savings accounts do depending on what type of mortgage product you have chosen at the time when opening this type of product (typically between 0% - 2%).
4. Certificates Of Deposit (CDs) Account: Certificates of deposite (CDs) offer higher rates than savings accounts but come with higher risk than checking accounts because they require that you lock in your money for longer periods of time before withdrawing it or earning interest payments on it (typically 5 years).
When you open a bank account, you're giving a financial institution permission to hold your money for safekeeping. The type of account you choose will depend on what kind of account you want and how much money you want to keep in it.
Here are some of the most common types:
1. Checking Account: This is the most common type of bank account. It allows you to write checks, make withdrawals and deposits, access your money electronically, and pay bills online. This type of account also gives you access to automated services such as billpay and direct deposit.
2. Savings Account: Savings accounts are good for long-term savings goals such as retirement or college tuition payments. They also offer interest on your money while it sits in the account earning interest.
3. Money Market Account: These accounts are similar to checking accounts with the exception that they do not allow you to make withdrawals or deposits at will but do offer higher interest rates than regular savings accounts do depending on what type of mortgage product you have chosen at the time when opening this type of product (typically between 0% - 2%).
4. Certificates Of Deposit (CDs) Account: Certificates of deposite (CDs) offer higher rates than savings accounts but come with higher risk than checking accounts because they require that you lock in your money for longer periods of time before withdrawing it or earning interest payments on it (typically 5 years).
