Checking Account Overview
Types of Bank Accounts
Bank accounts offer convenience, safety and security for your money. Whether you bank online or prefer a traditional bank or credit union, there are numerous account options from which to choose.
Different types of bank accounts can serve different purposes, depending on your needs. Some allow you to spend or pay bills, while others are designed for short- or long-term savings. The most common types of bank accounts include:
- Checking accounts
- Savings accounts
- Money market accounts (MMAs)
- Certificate of deposit accounts (CDs)
Understanding how the different types of bank accounts compare can make it easier to decide where to keep your money.
Checking Account Basics
A checking account is a type of deposit account you can open at a brick-and-mortar bank, credit union or online bank. Some nonbank financial institutions also offer checking accounts to customers.
Here are some of the key features of checking accounts in general:
- Designed to hold funds you plan to spend or use to pay bills
- Typically come with a debit card for making purchases or cash withdrawals
- May come with paper checks as well
- Can be linked to other types of bank accounts, including savings accounts
It’s important to note that checking accounts aren’t all alike in terms of the features or benefits they offer. Banks can offer multiple checking account options designed to fit a variety of banking needs, including:
- Kids or teen checking
- Student checking
- Senior checking
- Interest checking
- Rewards checking
A basic checking account is generally the most common option you’ll find. With a basic checking account, you may be able to spend using a debit card, pay bills online or via paper check and transfer funds to or from linked accounts. Basic or standard checking accounts may come with a monthly maintenance fee or have minimum balance requirements you need to meet to avoid the fee.
How to Choose a Checking Account
If you’re interested in opening a checking account, first consider whether a traditional bank or online banking makes more sense. If you don’t need branch access, then an online checking account could be a convenient way to manage your money.
Beyond that, consider the type of features you need and what you’re willing to pay for a checking account. Here’s a simple checklist of things to consider as you compare accounts:
- Minimum deposit requirements
- Minimum balance requirements
- Monthly maintenance fees
- Other banking fees, such as overdraft or ATM fees
- ATM network size and locations
- Added features or benefits, such as rewards on purchases or fee-free person-to-person payments
If you decide to switch banks, remember to update your checking account information for automatic bill payments and other recurring payments.