What Type of Bank Account is Right for You?

What type of bank account should you open? The answer depends on how you plan to use the account. If you want to build up your savings and you think that you will not need your money soon, a certificate of deposit may be right for you.

If you need to reach your money, however, a savings or checking account may be a better choice. You will probably find that a checking account is best for you if you plan to write several checks each month (for example, to pay bills). But if you usually write only two or three checks each month, then a money market account might be a better deal. Money market accounts usually pay a higher rate of interest than do checking accounts, but minimum balance requirements are often higher as well.

Remember, bank account features and fees vary from one institution to the next. If you have questions, you should ask a representative of the institution about any bank account features and fees BEFORE you open an account.