types of bank deposit accounts

Posted : January 22, 2018
Last Updated : January 22, 2018

types of bank deposit accounts

Deposit accounts are accounts in which you can add or deposit money. Checking and savings accounts are two examples of deposit accounts.

A checking account allows you to pay bills and buy goods with the money you've deposited.

  • When you write a check, use an ATM or debit card, or bank online, the financial institution takes the money from your account and pays it to the designated person or business.
  • Some checking accounts may earn interest.

A savings account:

  • Often earns interest.
  • Generally can't be used like a checking account.
  • May allow you to use an ATM or debit card.

The bank statement lists all of your deposits, withdrawals, fees charged to your account, ATM and debit transactions, checks written, and other messages. Banks might require you to have a certain balance to open an account, earn interest, or avoid fees. This is usually called a minimum balance. Interest is a percentage of your balance that the bank pays you for keeping your money at that bank; that is, if the account pays interest.

Many banks also offer non-deposit accounts or products that aren't insured by the FDIC.

  • Stocks, bonds, and mutual funds are examples of non-deposit investment products.
  • These carry some level of risk, meaning that you could lose some or all of the money that you invest in these products.

Bank personnel should provide a written explanation that these products aren't insured by the FDIC and may lose value. It’s important to understand these products and services before you buy them.

Source: PlanningYourDreams.org


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types of bank deposit accounts

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