If you have been interested in opening a bank account you might desire to find out about the numerous kinds of bank accounts before you decide on just one. Prior to deciding on what type of account you want the foremost obstacle to get around is trying to determine which financial institution you would like to join. There is a lot of competition within the banking industry for your business and selecting the right financial institution can be quite a challenge. After you figure out which banking institution you will join with next let’s find out about the many bank accounts accessible to you.
Perhaps the most commonly known bank account is the checking account. Now days writing checks isn’t as widely held as it used to be due to debit and credit cards as well as the alternative to draft a payment straight from your bank account. Primarily a checking account needs a checking account holder to write out checks to apply for products, bill pays, send out money to anyone, etc. The cash that is written on the check at the time it is created is debited from your checking account and sent to the chosen party’s bank account.
A savings account is one other form of bank account that is specifically designed to save money. Money is deposited and withdrawn from this particular account the same way it can be drawn from a checking account. The lone difference is there are no personal checks meant for a savings account although you can still make bill payments through a savings account. Nearly all savings accounts give account holders the opportunity to enter their personal account through a debit card with a Visa emblem. Debit cards are utilized very similar to credit cards in which purchases can be made everyplace where Visa is honored. The money that is spent comes directly from the savings account.
One other type of bank account is the money market account. This particular bank account usually earns a higher interest rate than the normal checking and savings account. The major difference with a money market account is there is a customary minimum balance that has to be kept up in order to gain interest. This particular balance is also higher than is required for a checking and savings account as well.
A different bank account that has been promoted at banks but is quite dissimilar to the other accounts is a certificate of deposit. These types of accounts which are also referred to as time deposits necessitate that all account holders deposit money and determine to leave the cash within the certificate of deposit account meant for a predetermined amount of time. The upside to this deal is the banks pays interest on this account. If the account holder takes the money from the certificate of deposit previous to the set time after that there is a penalty fee assessed. The purpose in possessing a cd is to store money in reserve for a a small number of months generally 6 months to a year so you may have it when you need it.
Starting a bank account is essential for everybody but it is likewise crucial to understand what forms of bank accounts your bank provides so you would understand your options. Each type of bank account has its own characteristics catering to your needs.
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To open a bank account and find the nearest Citibank in your area visit Citibank locations .
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