Today, many people may be confused about bank accounts and how they play a role in achieving financial goals. There is a plethora of choices about what types of bank accounts to use to pay creditors, save for future purposes, or for long-term savings goals. Three common types of bank accounts are checking, savings and certificate of deposits.
Checking Account
Bank checking accounts are accounts in which money is deposited and checks are written to pay bills, purchase products or services, send money, transfer money into other accounts or institutions. Checks are used like cash to pay creditors.
Banks may impose fees on checking accounts, such as fees for blank checks, monthly fees for minimum balances or if balance falls below a set amount. Some banks charge a fee for every transaction made. Some banks will provide overdraft protection if account does not contain funds for payment to creditors; however, they usually charge a hefty fee for this service.
