Making different bank accounts is usual nowadays because it has become the need of time. It is necessary to have enough information about different types of bank accounts that you may need for different purposes. The different types of bank accounts can be classified as:
- Savings accounts
- Money market accounts
- Checking accounts, including interest checking
- Retirement accounts
- Certificates of deposit (CDs)
Saving accounts are used by people who save their money for future purposes and investment. Such an account can be opened by anyone, either a teenager or an adult. Even, children also make saving accounts with a parent.
Money market accounts are those accounts which are useful for earning high-interest rates. You can earn interest rates more in this account than a saving account.
Checking account is for deposit checks. Such accounts can be used for withdrawals and pay bills. A recent form of checking account is the debit account with which a debit card is used for different purposes.
Retirement accounts are popular for tax advantages. In simple words, having a retirement account means you do not need to pay income taxes.
Certificates of deposit allow you to earn more than any other type of bank account. Certificates of deposit account, also known as CD allows locking up your money for a while and earn.