Our pick for a savings account: Synchrony High Yield Savings
- Earn customer rewards
- Free ATM card
- No minimum balance
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There are many different types of bank accounts out there to choose from. Deciding on which type of bank account you need depends on your financial goals. Broken down to its fundamental level, your goal is to either spend, save or do both. These are the four main types of bank accounts:
A checking account is designed for everyday spending as there’s no cap on the number of deposits and withdrawals you can make each month. You’ll typically get a checkbook and a debit card so you can make purchases and withdraw cash on the go. Most checking accounts don’t earn interest, but more and more interest-bearing options are starting to pop up.
As its name implies, a savings account is designed for saving. You earn interest on the money you keep in the account, but you typically won’t get an ATM card or checks. You’re also limited to six withdrawals a month per Regulation D. However, this policy is temporarily suspended due to the coronavirus pandemic.
Think of a money market account as a savings/checking account hybrid. You get the benefits of a debit card and checkwriting privileges, but you also earn the same competitive interest rate as you would with a savings account. On the downside, money market accounts are typically limited to six withdrawals a month and they may require deposits of $500 or more to get started.
With a certificate of deposit, you agree to lock your money away for a set period of time (usually anywhere from three months to 10 years). In exchange, you get a fixed interest rate that won’t change even if rates drop. The only catch is that you can’t withdraw your money before your CD matures. If you do, you’ll pay early withdrawal penalties.
|Basic checking account||Interest bearing checking account||Savings account||Money market account||Certificate of deposit (CD)|
|Best for||Those who want a basic spending account to pay bills, transfer funds and make purchases||Those who want an account that earns interest and gives them access to extra features||Those who want to earn interest on their savings||Those who want a checking and savings hybrid that earns interest but is accessible||Those looking for a short-term investment with a locked in interest rate|
|Minimum deposit||$0 to $25||$100 to $500||$0 to $100||$2,500 to $10,000||$500 to $10,000|
|FDIC or NCUA insured|
|Withdrawal limits||six a month||six a month||Can’t withdraw until maturity|
Here are a few features to keep in mind when finding the best bank account for your needs:
The best bank accounts are transparent, flexible and offer perks that help you reach your financial goals. When considering the best accounts, we looked at factors like interest rates, ease of use, ATM access, deposit requirements, monthly fees and additional perks.
|Minimum to earn interest||$0|
|Monthly transaction limit||6|
|Fee per transaction over limit||$0|
For more accounts that fit your goals, compare our list of best savings accounts.
|Account fees||$0 monthly|
|Can the fee be waived?||
|Insufficient funds fee||$9|
|ATM transaction fee||$0|
|Paper statement fee||$5|
|Wire transfer fee||$40|
|Foreign transaction fee||0%|
For more accounts that fit your spending lifestyle, compare our list of best checking accounts.
For more accounts that fit your savings goals, compare our list of best CDs.
The best account for you will depend on what you plan on using it for, so it’s important to identify what you value in your banking experience.
This table highlights the type of bank account that may be right for you depending on your situation:
If you’re a…
Consider this account
|Digital nomad or traveler||Digital bank account||Typically two-in-one spend and save accounts that are chockfull of budgeting tools and auto-save features to help you reach your goals|
|Couple||Joint bank account||An effective way for couples to manage their money together|
|Business owner||Business bank account||Makes it easy to manage cash flow and keep track of spending for tax and accounting purposes|
|Child||Kids bank account||Can help children learn how to manage their money, comes with parental controls and usually doesn’t have monthly fees|
|Teen or student||Teen bank account||Can help your child manage earned money and can teach them good habits they can carry into adulthood|
Use the tabs on this table to sort through popular checking, savings, and money market accounts, as well as CDs. Sort each table by minimum deposit and APY to find one that’s right for you.
Looking for a bank in California, New York and Texas? Use one of these lists to explore your options:
A bank account helps you save for the future, pay bills, spend conveniently, transfer money where you need it and get cash when you want it. Financial institutions offer bank accounts to give you a secure location to hold your money.
Having a bank account can help you manage your everyday finances and keep track of your money. Benefits of owning one are:
The amount of bank accounts you open depends on your personal financial goals. Most people typically have two accounts — a checking and a savings account. If you’re starting out with your first bank account, you’ll want to open up a checking account. And once you’re ready to start saving, you can open up a savings account. As your savings start to increase, most people tend to look into other types of accounts, such as CDs. And if you’re looking for a hybrid between a checking and savings account, you can consider a money market account or an interest-bearing checking account.
Skip waiting at the bank branch.
Close your account and find a bank that meets your needs.
Joint accounts are best for people who are working towards a similar financial goal together.
We don’t want to change banks for a number of reasons. If it’s not our priority to make a change, it may be because we’re getting exactly what we need from our bank or because it’s too much of a hassle to switch. If you’re satisfied with the services your bank provides, or even just loyal to the company you’ve been with for years, you might feel less inclined to change.
Here are some common measures banks take to protect your sensitive information:
Is it possible to reverse a foreign exchange transaction on my transaction account? You will need the help of your bank in most circumstances, but if you have the supporting documentation then you should be able to reverse a foreign exchange transaction.
Is it possible to cash out an international check? Yes, some US financial institutions will accept an international check deposit, although the funds could take longer to clear and you may be charged international transaction fees.
Do foreign banks charge a fee to receive an international money transfer? Yes, there are foreign banks who will charge your recipient upon receiving funds from an international money transfer. Remember to take into account exchange rates and recipient fees.
Open a business checking account and enjoy no transaction or maintenance fees.
Manage your international finances with free transfers to HSBC customers.
Earn a competitive rate as long as you open it with the Citi Accelerate Savings account.
This Chase business checking account has built-in card acceptance using a smartphone card reader.
Earn 0.81% APY regardless of your account balance, but watch out for overdraft fees.
Now is the time to support Black-owned institutions so they can continue fighting systemic racism and working to close the wealth gap that exists in America.
This high-yield money market account allows you to earn 0.9% APY, but lacks the perks of other Axos accounts.
Axos Bank offers only 0.2% APY on interest-bearing checking for ages 55 and up.
Teens ages 13 to 17 enjoy 0.25% APY and up to $12 in ATM reimbursements.
Opening a business bank account is easier than you think. Explore our guide on how to do it.
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