Not all bank accounts are the same. Some may not need a minimum balance and some may penalize you when you withdraw funds at the wrong time. Savings account and basic checking account are an ideal starting choice for everybody. Subsequently, they can branch out into different bank accounts where their money can start to add up.
Checking Account
It is the most basic type of bank account. For most people, it is where their bills get paid from, where their pay gets deposited, and where they keep the funds they need to get quickly. One can set up a checking account online or at a traditional bank. It comes with a debit card and works quite similarly to cash. With a checking account, you don’t need to carry cash in your wallet; you can swipe a debit card linked to your checking account.
Savings Account
A savings account and a checking account go hand in hand like Batman and Robin. If you’re setting up one, you may also set up the other. A savings account is a place where you want to put your funds that you want to save. It is an ideal choice for funds that you do not need immediately but want to keep at your disposal just in case.
Money Market Deposit Account
Simply put, a money market deposit account is the offspring of a savings account and a checking account. A money market deposit account, like a checking account, may come with a debit card, however, not every bank offers this feature. This account type earns interest, which is slightly more than what is earned from a savings account. It’s an ideal choice for those wanting to keep their money from everyday funds.