Which is the Best Bank Account for Me – A Checking Account, A Savings Account, or a Money Market Account?
It is a known fact that we all have a multitude of options when it comes to the safe placement of our money; however, the three most common options are a checking account, a savings account, and a money market account. If you are reading this, chances are, you are trying to determine which is most appropriate for your individual needs. All of these choices are typically federally insured for up to a total of $250,000 for each depositor. This means all of the account types properly protect your money.
You may choose one type of account, or a combination of different types of accounts – the choice is yours! Each and every single one of these account types have distinct advantages. In this brief guide, we will review these.
If you are an individual that needs to have the ability to get to your money at any time (unrestricted access), a checking account is likely the best option for your individual needs.
This is also the perfect type of account for the person that really does not have a massive amount of interest in maximizing the total amount of interest that is earned on the account. Best of all, these accounts either have low monthly fees or absolutely no fees at all.
These accounts allow you to access your money through internet-based transfers, the use of an ATM machine, utilization of a debit card, and through the use of personal checks.
The savings account is perfect for you if you are interested in earning interest on cash and establishing a bit of a financial cushion for those expenses that often arise unexpectedly.
The money that is kept in the savings account is typically not used to pay bills or handle the expenses of day-to-day life. These accounts are regulated by a federal regulation.
This states that only six transfers may be performed each month that are described as “convenience”; that is, those made online, transfers by phone, and direct withdrawals. Most savings accounts do not limit withdrawals taken directly from the bank branch, the ATM, or through the traditional mail system.
Money Market Account
If you have a lot of cash that needs to be deposited, the money market account is likely your best option. These accounts earn a very high amount of interest. The deposit requirement typically starts with a minimum of – at least – $1000.00. In most instance, you will have the option of ordering checks and/or a debit card for the account. A money market account is NOT the same as market mutual funds – so be VERY sure not to confuse the two.