What are the different types of bank accounts available?

28th Feb 2011 by admint

There are several different types of bank accounts. A checking account is a bank account that uses checks as the primary instrument for withdrawing money. You can also use a check to transfer money from your checking account to a bank account at a different financial institution. A savings account is another type of bank account that allows the holder to make deposits and withdrawals. Often, holders of this type of bank account are limited in the number of withdrawals and deposits they can make each month. Another type of bank account is a money market account. This type of bank account pays interest at a higher rate than the rate paid on interest-bearing savings and checking accounts. Time deposits, frequently referred to as certificates of deposit (CDs), are bank accounts that require the account holder to make a deposit and agree to leave funds in the account for a specific amount of time.

This answer is the subjective opinion of the writer and not of FinancialAdvisory.com