Opening your first bank account can be scary! Who knew there are so many different types of bank accounts out there? Most banks offer Savings Accounts, Checking Accounts, Money Market Accounts, Certificates of Deposits, Retirement Accounts and more.
Different bank accounts serve different purposes some excels at earning interest while others maximize convenience factor. It is important familiarize yourself with all the available banking options before open an account and put your money into someone else’s hands.
Financial institutions across the nation offer special incentives when you open a bank account, be informed on the general benefit & drawbacks of different accounts.
Interested in banking with Chase? See our list of Chase Coupons!
Table of Contents
A Savings Account is a great introductory bank account anybody looking to store money in a bank. Anyone can open a Savings Account, even kids may do so with some assistance from a parent. A savings account is a better alternative to storing money under your mattress because account holders earn interest based on deposit amounts. Make your money work for you!
Though, savings account typically give lower interest rates than the likes of Certificate of Deposit and Money Market Accounts. Another downside to savings account is that most banks place limitations on numbers of withdrawals can be made in a specific time period. This is an ideal place for an emergency fund.
American Express® High Yield Savings Account - You earn 0.40% interest rate along with no minimum deposits or monthly fees. Amex High Yield Savings account has been my favorite Hub account for the past 7 years. Using this account to Pull/Push your money is absolutely necessary when you have many accounts. Here's why:
*No dollar limitations for ACH transfers - When you find a top bank rate account, you don't want to be limited to just $5K or $10K transfers. Amex Savings will let you transfers as much as you want whether you are pulling or pushing money from and to an external bank account.
*1 to 2 business days ACH transfers speed - With top-notch user interface, you get your money to another external account or pull money from another bank account within a day or two.
*No loss of interest during transfers - On the day you initiate your transaction on the high yield savings account website, the funds will be reflected in your Current Balance and begin earning interest.
Some other features from American Express High Yield Savings Account include Free Wire Transfers, 3 maximum linked accounts, and maximum 6 ACH withdrawals per month.
Savings account offers are frequently updated. Find the best nationwide Savings/Money Market rates here, and the best Savings account bonuses here. The Axos Bank and CIT Bank accounts offer great rates available nationwide which I recommend.
|Discover Bank Online Savings||$200 Bonus + 0.40% APY||Review|
|Aspiration||$150 Bonus + 1.00% APY||Review|
|Axos Business Savings||$100 Bonus + 0.20% APY||Review|
|Axos Bank High Yield Savings||Up to 0.61% APY||Review|
|Quontic Bank High Yield Savings||0.55% APY||Review|
|CIT Bank Money Market||0.45% APY||Review|
|American Express High Yield Savings||0.40% APY||Review|
If you need to make frequent withdrawals, deposit checks, pay bills and likes to keep a relatively small balance then you need a Checking Account. Checking Account maximize the accessibility to between you and your money on a day-to-day basis. Most financial institution issue debit cards, checks, and grant access to 24/7 ATM machines at your convenience.
Banks are also starting to offer online bill pay services via Checking Account. Debit cards are becoming increasingly popular to the point where merchants may accept a variety of payment options. Pick a debit card that is tailored to your spending habits, different cards offer incentives & cashback rewards on your every purchase. Some financial institutions may charge maintenance fees and require minimum balance, but there are plenty more that does not.
Compare Checking Accounts
Open your Huntington 25 Checking account today and enjoy:
• $300 bonus by making cumulative new money deposits of at least $25,000 within 60 days of account opening. $500 will be deposited in your new account within 14 days of meeting requirements.
• 24-Hour Grace Overdraft Fee Relief. It is designed to give you more time to make a deposit in order to avoid an Overdraft Fee.
• Earn Interest on Balances. 0.05% Annual Percentage Yield applies to all balance tiers.
• Free ATM Withdrawals. They’ll waive all non-Huntington ATM cash withdrawal fees at any ATM and reimburse you for some withdrawal fees charged by another ATM owner.
• Waived Monthly Maintenance Fee
• Credit score and identity monitoring at no added cost
Money Market Account
Can’t decide whether you prefer a Checking or a Savings Account? If you want the best of both worlds and reap all the benefits then get a Money Market Account. Money Market Account typically give depositor higher interest rate than that of a Savings or Checking Account, the trade off being account holders may not withdrawal as frequently as a Checking Account. It important to note that withdrawals are typically limited to 6 per statement cycle.
The drawback that turn some people away from this account is the possibility of high minimum balance requirement. Those interested in earning high interest from Money Market Accounts should expect minimum balance requirements ranging from $5,000 to $10,000.
Compare Money Market Accounts
• Earn 0.25% APY with the Axos Bank High Yield Money Market
• FDIC Insured
• Check writing privileges
• No monthly maintenance fees
• No minimum balance requirements
• Debit card transactions
• Minimum Balance Required to Open the Account: $ 1000.00
• Get started and open a Discover Money Market Account in 3 easy steps.
• Available nationwide online
• Earn high yields with flexible access to your cash.
• Earn 0.35% APY balances $100,000 and over
• Earn 0.30% APY balances under $100,000
• Open with as little as $2,500.
• No hidden fees. No surprises.
• Easy cash access via debit or check, or via ATM at over 60,000 no-fee ATMs
With the CIT Bank Money Market Account, you can earn a competitive interest rate and access your money easily.
• Earn 0.45% APY on your funds
• One of the nation's top rates — several times the national average.
• Get up to 6 digital transfers/withdrawals per statement cycle
• Save smart and get more for your money
• Higher rates than traditional banks
• Get 24/7 Account Access
• Secure banking features
• Open with as little as $100
• FDIC insured
Certificate Of Deposit
A Money Market Account is fairly liquid in comparison to a Certificate of Deposit (CD), but a CD usually gives the highest rate out of all aforementioned accounts. CD is much like a Savings Account in the fact that it earns interest and virtually risk free. When you get to a CD, you are making the commitment that you are parting with your money for the duration of term length.
Term length may range from a month upward to 10 years and is agreed upon beforehand. Account holders face steep charges for withdrawing early, in some cases banks may deny withdrawal request. This account is great for those that want to earn high interest and happen to have money left over aside from emergency funds.
|CIT BANK CD TERM||RATE||LINK|
|12-Month Term||0.30% APY||Apply Now|
|13-Month Term||0.35% APY||Apply Now|
|18-Month Term||0.30% APY||Apply Now|
|4-Year Term||0.50% APY||Apply Now|
|12-Month Term||0.55% APY||Apply Now|
|24-Month Term||0.65% APY||Apply Now|
|36-Month Term||0.75% APY||Apply Now|
|48-Month Term||0.80% APY||Apply Now|
|84-Month Term||1.00% APY||Apply Now|
As the name suggests, a retirement account is geared toward retirement planning. Start saving for the future before it is too late, make sure to use Retirement Accounts since they offer tax advantages. Most banks offer Traditional IRAs as well as Roth IRAs, both IRAs can help ease tax burden but take different approaches.
It is up to the individual to choose a preferred way of saving money. A big drawback is account holders must meet specific requirements and there are extreme penalties imposed on early withdrawal.
|Ally Invest||Up to $3,000 Cash & free trades||Review|
|TradeStation||Up to $5,000 Cash & free trades||Review|
|Axos Invest||$150 Cash||Review|
|WeBull||2 Free Stocks & free trades||Review|
|SoFi Invest||$25 Bonus and free trades||Review|
It can be daunting when it comes to opening a bank account so read up and be prepared! It is vital to choose one that is best suited to your needs so you can reap the most benefits.
High interest rate and little to no fees are primary benefits that comes to mind but remember to factor in convenience.
There is no bank account that is universally perfect for everyone, after all each person is unique individual with specific financial needs & resources.
I recommend you carefully compare & contract all your options and make an informed decision!