You want to open a bank account but there are too many options? Banks often offer a variety of accounts, so it may take a bit of research to find the one that suits you best. Check these tips that will help you decide!
If you are looking to open a bank account, then you should first know that banks offer different types of accounts. You just need to find the one that's for you!
Take into account the following tips to check what you should know to open the bank account that suits you better.
1. Basic checking account
This type of accounts is one with which you can make both deposits and withdrawals on a regular basis and don't usually have transaction restrictions.
You can also want to open a savings account with a checking account with almost no interest.
With a checking account, you will also be able to write checks out of the account to pay services, like tour phone bill.
2. Money Market Savings account
This type of account is similar to the previous one as it allows you to write checks out of the account. Nevertheless, Money Market Savings accounts will apply transaction limits, so you will have a limited amount of checks per month.
The benefit of a Money Market Savings account is that you will earn higher interest rates than with a checking account.
3. Regular Savings account
This option suits everyone! As in the checking account, you can also make deposits and withdrawals without transaction restrictions.
With Savings accounts you can also earn a regular interest rate, which does not vary.
4. Certificate of Deposit (CD)
In this case, you can earn a higher interest rate than in other accounts.
However, in a Certificate of Deposit, you will need to commit to having it for a determined period of time - anywhere from a month to 10 years. The more you commit to it, the higher the interest rate you will receive.
Bear in mind that if you withdraw before your term you will be penalized, and therefore earn less money.