The Basics of Banking: Types of Accounts

A Savings account is a place to store and save your money over time. It can be used as an emergency fund, to save to a big expense, to save money for retirement. Savings accounts usually offer a modest interest rate, this rate earns you additional money based off the amount you have in the account. This additional money is added to that base amount on a schedule determined by the bank (often daily or monthly), increasing it.

• Regular Savings Account
• Online Savings Account
• High-Yield Savings Account
• Student Savings Account
• CDs
• Money Market Accounts

Types of savings accounts: Where to save your money, Bankrate

Deciding what type of account you need is just as important choosing your bank. Some things to consider when deciding on what type of account would work best for you:

• What are your financial goals? Are you saving for something or just looking to set up online bill payments? Are you looking to build credit?
• Are there any types of fees or rates associated with the accounts? Maintenance Fees or Overdraft Fees? Interest rates?
• Are there any special promotions associated with the account? (ex. Interest free for the first year)
• Is there a minimum balance requirement to keep the account open?
• What are the terms and conditions of the account?
• Who is the account for? Some banks or credit unions offer different versions of some of the following accounts for teens, college students or seniors.

Checking accounts unlike savings accounts allow unlimited transactions and withdrawals. This is because Checking Accounts are used for day-to-day transactions. You can use them to schedule bill payments, withdraw cash, pay off debt, one time transfers from one account to another. 

Types of checking accounts offered at banks and credit unions: 10 types of checking accounts: Which is best for you?, Bankrate

Many consumers use credit cards to purchase goods and services. When you use a credit card, you are borrowing money that you must pay back, in addition to interest if you do not pay the balance in full by the due date. Credit cards can help you to manage your cash flow and handle unexpected expenses. However, they can also cause you to pay more for what you purchase if you carry a balance.

Types of Credit Cards:

• Credit cards that earn rewards.

• Credit cards that save you money on interest.

• Credit cards that help you build or rebuild your credit.

Types of Credit Cards, NerdWallet

Visit or Credit Scores & Credit Reports Guide for more information on how credit works