Types of Bank Accounts
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Types of Bank Accounts |
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Types of Checking Savings Accounts
There are two main types of banking accounts, checking and savings. Most students have a savings account set up for them by their parents when they are very little, but a checking account may not become important until he or she begins college or a part-time job.
Choosing the right checking account for your needs is very important. While many banks have their own names and categories for the types of checking, all banks tend to have four main categories of checking accounts:
Budget Checking - Requires no minimum monthly balance, but limits teller transactions and the number of checks you may write per month. You may also be charges a monthly fee.
Basic Checking - Typically a monthly balance is required, but there is no limit to teller transactions or to the number of checks. As long as the minimum balance is maintained, no fee is charged.
Express Checking - For those individuals that like to bank over the phone or via the Internet. This service has similar balance restrictions to Basic Checking.
Interest Checking - For individuals that are able to maintain a high monthly balance. The account functions similar to a savings account in that the account earns interest. A minimum balance must be maintained.
To learn more about the different types of checking accounts go to "Types of Accounts Basics" at bankrate.com.
Savings accounts are divided into two main categories:
passbook accounts - As a child you may have a passbook account with a parent or guardian as a custodian. This simply means that you need your parent's signature to withdraw any money from your account.
traditional accounts - A traditional account will vary in the amount of interest you receive for your balance and tends to vary slightly from bank to bank.
In today's market it is important to mention that regular savings accounts are not the best way to save your money. Short and long-term CD's, government savings bonds, and mutual funds provide a much higher rate of return. To learn more about these methods of saving, go to Savings Bonds & CD's.
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Last modified 06/18/02