Different Bank Account Types
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What different account types can I choose?
When you compare bank accounts, there are many differences to consider, whether you're reviewing checking accounts, interest-bearing checking accounts, or savings accounts.
Comparing Bank Account Types
- Checking account: A traditional checking account is one that pays no interest on the funds deposited within the account. You can take money from the account as cash withdrawals, ATM withdrawals, or in the form of written checks. You can also conduct wire transfers to and from the account.
- Interest-bearing checking account: These accounts pay interest on the funds within the account but still allow all the same check-writing and cash-withdrawal options as a traditional checking account. These accounts can be dangerous for saving simply because it's so easy to access the cash. Wire transfers are permissible in this type of account.
- Savings account: A savings account is an account that has limited options for cash withdrawal (ATM and in-bank options) and pays interest. The limited access to cash within the account can help people accumulate more savings than a checking account can. Wire transfers can be permitted in savings accounts.