Accounts Bank

By: EconomyWatch Content   Date: 31 October 2009

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The accounts a bank offers a means to record the financial transactions and resulting financial position of an individual. Banks offer a variety of accounts to both individuals and businesses. Banks offer a variety of accounts to cater to individual and business clients. Savings accounts are preferred by people who wish to augment their savings, while those who need to make several financial transactions during the month often opt for checking accounts.Most banks do not pay interest on checking accounts.

Accounts Bank: Types

Although banks might call their banking products by various names, the accounts a bank offers broadly fall in to few categories.

Savings Accounts
With this type of account, you can make withdrawals but you cannot use checks to withdraw money. The number of withdrawals per month is limited to a certain amount, depending upon the bank. Banks also offer different banking accounts under the savings account category, such as statement savings and passbook savings accounts. With a passbook savings account, you will receive a record book containing all your transactions. You need to show the book to your bankers when you are making deposits or withdrawals. With a statement savings account, you will get regular mail from your bank showing all the transactions you have been making. There are online savings accounts that offer convenience and speed.

Checking Accounts

With checking accounts, you can use checks to withdraw money, pay your bills, buy products and services, and transfer money. With checking accounts, banks allow you to transfer money from your account into third party accounts. Moreover, such accounts offer convenience and frequent access. Checking accounts will also let you to use ATMs to withdraw money and to purchase products through ATM cards. While some banks pay interest on checking account, many do not. Banks normally charge for the services, including check clearance.

Money Market Accounts

Many banks offer interest-bearing accounts called money market accounts that let you use checks for transactions. This type of account offers more interest yield than savings and current accounts. However, money market accounts require higher minimum balance. They also permit only a limited number of withdrawals. Moreover, these accounts might not be as convenient as savings or checking accounts. Like checking accounts, money market accounts charge fees for their services.

Choose accounts a bank offers based on your intended use and requirements. For example, if you want to build your savings with interest earnings, you can opt for a savings account. If you are going to make several transactions in a month rather than focusing on the interest yield, you might benefit from a current or checking account.


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