Bank Accounts - Different Types Available. Which One is Best For You: The Basic, Regular Checking, Money Market, Savings, Internet Bank Account?
By Sanford G. Miller
The right bank account is important for your financial future. What are the different types of Bank Accounts and which one is for you?.We give you the information you'll need for making a decision on Basic, Checking, Savings, Online Banking and Money Market Account.
Basic or No Frill Bank Accounts provide you a limited set of services for a low price (often referred to as "basic" or "no frill" accounts. Basic accounts give you a convenient way to pay bills and cash checks for less than you might pay without an account. These are usually checking accounts, but they may limit the number of checks you can write and the number of deposits and withdrawals you can make. Interest generally is not paid on basic accounts. Compare basic and regular checking accounts for the best deal in low fees or low minimum balance requirements.
With a Regular Checking Bank Account you will be able to transact business at the Bank counter, use the ATM machines to deposit or withdraw cash, check your balance and set up up bill paying through your debit card or checking account. Some banks may offer an overdraft and interest on any savings. Be mindful of the fees attached to overdraft protection privileges.
Internet Bank Accounts,- The Basics
Online or virtual banks exist entirely on the Internet, where the same range of services are offered and the same federal regulations as your corner bank are followed. These online banking companies pass money saved on buildings and tellers to the depositors in the forms of lower fees. The disadvantage of virtual banks revolves around ATMs, because they have no ATM machines, and charge similar fees to banks other than your own: Many online banking are also compatible with money managing programs such as Quicken and Microsoft Money.:
Banking online offers fast transactions. Online only banks, obviously operate only online, offer higher interest rates and affordable fees. Convenience is a trademark of this system. But what are the concerns an investor should have?
Protect Your Password
First and foremost, protect your password. Choose a password that isn't too personal, and one that is easy to remember. It's not a good idea to use the last four digits of your social security, or birthday numbers, or phone numbers. These numbers might be easy to recall, but also easy for online hackers to break into. Use a combination of letters and numbers and change the password every four months.
Beware of Your E-mail. Predatory e-E-mail Happens More Often Than You Think.
Be careful of suspicious e-mails. Thieves wishing to steal personal information try what is called phishing. This is an attempt through an e-mail to get personal information, such as password, social security numbers, mother's maiden name or birthday.
Sometimes the e-mails looks real, because it utilizes the logo of the bank. These unscrupulous firms lure you to a fake site to get your information.
Check With Online Bank
If you're suspicious, check with your online banking institution, immediately. Have we frightened you from banking online? Internet banking is safe, just be cautious.
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If you haven’t already, done so, now is the
right time to join the 21st century and open a bank account online.,
or begin to familiarize yourself with your current bank's online
offerings.
No more envelopes and stamps. Online banking makes it easier to keep
track of transactions and to pay your bills directly.
For some people the problem with online banking is
learning to trust it. Did I click the
submit button correctly? one might ask. There is an easy
solution To keep on the safe side, print a transaction receipt. Hold
the receipt with your bank records until your transaction appears in
your online account and
on your statement.
Savings Account You will be paid interest on any amount you have deposited. Usually you can access your money with a cash card or over the counter with a pass book. Savings accounts may also be term accounts where you must keep your savings invested for a defined term, usually six months or one, two, three or five years.
Access to savings accounts may be instant, or a fixed notice period. Usually the term accounts may not be touched for the period of the defined term. With savings accounts you can make withdrawals, but you do not have the flexibility of using checks to do so. As with a money market account, the number of withdrawals or transfers you can make on the account each month is limited.
Many institutions offer more than one type of savings account -- for example, passbook savings and statement savings. With a passbook savings account you receive a record book in which your deposits and withdrawals are entered to keep track of transactions on your account; this record book must be presented when you make deposits and withdrawals. With a statement savings account, the institution regularly mails you a statement that shows your withdrawals and deposits for the account. As with other accounts, institutions may assess various fees on savings accounts, such as minimum balance fees.
Money Market Accounts Most banking institutions offer an interest-bearing account that allows you to write checks, and is called a money market account. This type of account usually pays a higher rate of interest than a checking or savings account does.
What's the catch? Money market accounts often require a higher minimum balance to start earning interest, but they frequently pay higher rates for higher balances. If you use your account frequently to withdraw cash, a money market account may not be as convenient as a checking account. For one, you are limited to six transfers to another account or to other people, each month, and only three can be by check. As with checking accounts, most Banks charged fees on money market accounts.
Which Type of Banking Account Is Right For Me? A regular checking account will suit you when you want more options than a basic account can give you, and you have a good credit rating. A savings account will be the right choice if you want to put money away for a rainy day or if you are saving up for say a car, holiday or wish to make a deposit for a house. Choose wisely. Choose carefully. The choice is yours.