Bank Account
When you decide to open a bank account you need to know there several types of bank accounts to choose from according to your financial needs. In order to make the right decision for you or your business, you may want to try to understand each large category of bank accounts.
Current Account/Checking Account
A current account is the basic account which can be used for daily deposits and purchases. It usually comes with such additional services as a check book and a Debit Card or ATM card. This bank account enables account holders to easily access their funds and use them to pay bills, make purchases, transfer funds to other accounts, withdraw money etc.
Savings Account
Savings bank accounts are specifically designed for customers who have a lot of money that they are not planning to use regularly. With a savings account users can set aside their wealth while receiving a monetary return. Savings accounts usually come with high interest rates but lack the flexibility of checking accounts.
Check Account
Even though check books are normally assigned to current accounts you can still open a specific check account to use checks as the main instrument for manipulating your cash.
Student/Children/Senior/Special Account
Most banks offer special accounts for senior citizens, students or children. These are usually Current Accounts that have several specific features.
Money Market Account
This account combines checking with savings. Money market accounts require a minimum balance to open.
Certificates of Deposit (CDs)
CDs, also known as time deposits, are bank accounts that require users to make a deposit and keep their money there for a certain length of time. CDs have a fixed term and a fixed interest rate that is much higher than with other accounts from which money may be withdrawn at any time.
