Types
of Bank Accounts
Savings accounts:
They are for people who want to keep their money in a safe place and earn interest at the same time. We don’t need a lot of money to open a savings account.
Certificates of deposit:
They are savings deposits that require you to keep a certain amount of money in the bank for a fixed period of time. Usually banks charge a penalty if we withdraw our money early.
Individual retirement accounts: They are savings deposits that offer an excellent way to save for our later years.
Checking accounts or Current accounts:
They offer safety and convenience. We keep our money in the account and write a check when we want to pay a bill or transfer some of our money to someone else. Banks sometimes charge a fee for checking accounts, many banks also offer no-fee checking and checking accounts that earn interest if you agree to keep a certain amount of money—a minimum balance—in the account.
Money market deposit accounts:
They are similar to checking accounts that earn interest, except that they usually pay a higher rate of interest and require a higher minimum balance.
