Money Minute 1: Bank Accounts
This is a new series of posts that we are trialing.
The first process of gaining money, lazily or not, is to have a safe manageable place to store it depending on how you use it. It is often best to have multiple bank accounts to manage your finances to suit your needs. The two primary types of bank accounts are SAVINGS and CHECKING accounts. Checking accounts are more flexible for frequent usage and spending, such as to pay bills and make purchases. Savings accounts are for saving for the future, with some accruing interest. These often have limits about the number of withdrawals that can be made to the account each month. Checking accounts occasionally have some accruing interest based on the lowest balance of the month.
Depending on the bank, you should always be wary of usage and overdraft fees. Every bank account has it’s own pros and cons, which is why it can be difficult to choose. Some are free to open, while others charge a monthly or one-time fee. Some are for personal use, while others are for businesses, small and large. Some are brick-and-mortar, and some are only online. Some require a minimal balance or frequency of use before charging a fee.
Coming up: CHOOSING A BANKING INSTITUTION