Types of Bank Accounts

When you are dealing with bank transactions, you must need a proper bank account which suits your needs and demands. There are various types of bank accounts, some of them you might be aware of while some of them you might not be. But it’s better to have knowledge of types of bank account as you can use the one which you find most suitable giving higher rate of interest and charging you less. There are different types of bank accounts for people of different age as if you are a student then there will be different types of bank accounts for you, if you are a person above 60 then there will be different types of bank accounts, thus it depends upon your needs and usage as to which types of bank accounts you want to opt for. Choose types of bank accounts which do not restrict you from doing any kind of activity. Here are some of the types of bank accounts.

  • Savings account

It is the most common types of bank accounts and most of people have savings account. This account is a nice way to save money. These types of bank accounts allow you to deposit money and make withdrawals but it generally doesn’t allow you to write checks. The interest rate of savings account is low, it is probably higher than checking account but it is lower than money market accounts. In certain types of savings account there is passbook where in transactions are logged in a small booklet which keeps the record of your each and every transactions. There are several savings account which usually charge the fees if balance falls the specific minimum level.

  • Basic checking account

Basic checking account is also known as the no frills account. These types of account offers limited services with really low cost. You can do basic banking work with such accounts but you cannot have benefits and facilities of more comprehensive accounts. These types of accounts generally don’t pay interest and they also restrict you from having much activity and also impose fees if you do so. For example fees will be charged if you write more than certain number of checks per month.

  • Interest bearing checking account

As compared to checking account, these types of bank accounts offer you with more types of services and facilities but they generally charge higher. Here you are free to write as many checks as you want, you are not restricted to specific number of checks. Checking account which avails you with interest are referred to as negotiable order of withdrawal accounts. The rate of interest generally depends upon the higher balance in your account and most of these accounts charge a monthly service fee if the balance of your account goes below a certain specific level. Thus here you get higher services and benefits with higher fees.