There are different bank accounts for different needs. To get an understanding in all of them is difficult because each bank may offer different variations of similar accounts. However, most banking accounts fall into 3 broad categories. By learning about these categories, you can make an informed choice on what kind of bank account you can open to meet your needs.
Savings Account
A savings account is the most basic account you can open in a bank. The Image may be NSFW.
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account allows the owner or account holder to make deposits and withdrawals of cash. Savings account holders are not given checks so they cannot access their money other than withdrawal through the branch, automated teller machines or internet banking. Often, there are restrictions to the number of withdrawals each account holder can make in a month without charge. This is because banks want to limit the transaction cost per account. Savings account holders are also paid an interest rate by the bank as a reward for keeping the money with the bank
Checking Account
A checking account takes its name from the most prominent feature of the account. It works pretty much like a savings account with the glaring exception. Holders of this account are given personal checks which can they write out for cash. This is by far the most popular account for anybody living in the country. Checking accounts are typically not given any interest but the trend is now changing. There are interest paying checking accounts but the interest rate is not often the lowest among the accounts.
Money Market Account
Most banks now offer an interest bearing account with check writing facility. This combination account is also called the money market account. This account is basically a hybrid of savings and checking accounts but pays higher interest than a savings or checking account. However there is likely to be a higher balance requirement when opening a money market account and account holders are limited in the number of transaction they can make a month.
