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Bank Account Types

12 Feb, 2008 | Bank Accounts | admin

Banks offer a variety of accounts. So which is right for you? 

Basic Checking Accounts - give you limited services for a price. They may  charge a fee for writing checks over a certain limit or charge a monthly fee. Banks  require a direct deposit or minimum balance avoid fees. These accounts usually do  not pay interest.

Interest-Bearing Checking Accounts - the higher your balance the more interest you get. If your balance goes under a certain level, a fee is charged. These accounts offer unlimited check writing.

Money Market Accounts - pays a higher rate than a checking or savings account. Rates vary according to market conditions. These are insured by the FDIC. Money market accounts have limited check-writing. Minimum balance fees apply.

Asset Management Accounts - a checking account that many brokerage houses and banks offer. They have the convenience of one account for does all of your banking and investing. These accounts give you unlimited check-writing and a statement that documents your transactions. Many banks require a higher minimum balance to open this type of account. Annual fees may apply.

Passbook Savings - transactions are logged in a book. Lose the book and the bank will charge you to replace it. Passbook accounts are offered by banks, savings and loans, and credit unions. They have low interest rates and do not allow check-writing. Minimum balance fees apply.

Statement Savings - bank mails you a monthly or quarterly statement documenting your transactions. Minimum balance fees apply.



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