Bank Accounts

The Different Types of Banking Accounts available to you

Because there are a wide variety of banking accounts that you can open, you will want to know what your options are like. Not all bank accounts are the same, which is why it’s so important that you make a point of doing this research. A lot of people tend to just open up a standard checking account (which can be fine), but you will definitely want to know what there is to choose from before making a final decision. The type of bank account you have will affect your overall banking experience.

Standard checking account

There is of course the standard checking account, which is what most people go for. Some basic checking accounts come with a monthly or annual fee while others do not. You can typically avoid maintenance fees altogether by simply keeping up with the minimum required balance, which varies depending on the bank. If you want to avoid paying more than you have to, it is a good idea to keep this in mind.

Free checking accounts

You may want to also look into free checking accounts, which do not come with any sort of fees whatsoever. There are no monthly service charges or anything else that you will need to worry about. You will however have to pay fees if you overdraft your account, which is standard for all different types of checking accounts. This can be a good choice for college students and those who do not plan on keeping a ton of money in their accounts at any given time.

Joint checking accounts

You always have the option of opening up a joint checking account, which is commonly done with married couples. This type of account is owned by everyone whose name is associated with it, so there is no one person whom the money in it belongs to. A majority of banking accounts will allow multiple people to have ownership of it. It is always important to be financially organized with any type of checking account, but it’s particularly important with one that is jointly owned.

Interest-bearing checking accounts

An interest-bearing account will require a certain amount of money just to open it, so you will want to keep that in mind. The money that you deposit into this type of account will accumulate interest over time, so you are actually making money on your money. Interest on the money in your account will be paid each month, but the rates are usually very low. Most people find that having this type of account just isn’t worth it because they need to maintain a minimum balance (which is usually fairly high).

Express checking accounts

An express checking account is best for those who bank via computer or ATM, as you won’t have any limitations when it comes to how many cheques you can write. These accounts typically have low monthly fees or none at all, and you won’t have to worry about maintaining a very high minimum balance. Express checking accounts are also a good option for students and younger people in general.

Student checking accounts

A student checking account usually comes with quite a few perks, including free checks and ATM use. If you are trying to save as much money as possible because you are going to school, you will certainly be interested in this option. If you have one of these accounts you will also be able to get pretty good rates on credit cards and various types of loans. You will find that most banks offer student accounts, though you may want to do a bit shopping around so you can get the most perks possible.

Final Thoughts

When you are trying to choose the right type of checking account to get, it is important that you closely review your options. The account you have at a bank can affect your banking experience in a number of ways, which is all the more reason for you to do your research before landing on a certain option. Some types of accounts are better than others for people, so you will need to keep that in mind.

There are a few things to keep in mind when you are trying to find the right checking account to match your needs, including how frequently you write cheques as well as how comfortable you are with online banking. When you take these things into consideration, you should be able to make the right overall choice.

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