What Type Of Bank Account Is Right For You?
Whether you’re an individual with a growing business or a newly married couple who is just starting out, one of the main questions you will find yourself asking regards what sort of bank account you should open. The type of account you open determines how your money is stored and how it can be accessed by you. When you are ready to open an account, a teller at your local bank can help you assess your financial needs and goals and learn more about what type of account would fit your needs.
A savings account is ideal for those who wish to do exactly what the name suggests- save. For individuals or businesses making long term investments, these accounts are a safe choice for money storage. There, it will accrue interest at a rate that is determined by the current financial market and the value of the bank’s stock. This is a good place to put bonds and CDs that may have been handed down to you by older generations, as they can continue to grow and accrue funds. These accounts rarely have a minimum balance or monthly fee, as they are often tied to other accounts that are more lucrative for the institution.
A checking account is a more complex type of banking account which allows the account holder to spend their money remotely via a check or a check card that uses a secure PIN. These accounts can be used for direct deposits from employers, the government or other sources. A routing and account number are tied to the individual’s money and are used to perform transactions. This account type typically has a minimum balance as well as a minimum deposit amount required when opening said account. In some cases, maintaining a certain balance or receiving direct deposits over a certain amount in a month can waive monthly fees.
Some More Information To Know
If you are unsure of how to proceed, a teller at your bank can help you make an informed choice. It is important to practice safety when using any bank account, but especially a checking account, which can be left vulnerable to fraud and identity theft if not consistently secured and kept private. Writing checks for an amount that exceeds the account balance results in an overdraft fee, a pricey charge that will continue to accrue if not righted- a secured savings account with backup money can be used to prevent these fees from happening.