Types of Accounts
Things to Consider When Choosing an Account
Minimum deposit and balance requirements
Monthly fees
Bank/ATM locations (Or if it's an online bank)
Banks have many different options and types of accounts. The most common ones include checking accounts and savings accounts.
Different types of accounts are useful for different purposes. Do your research on what would work best for you. Remember to read the fine print!
Checking Accounts
Checking accounts are accounts you can open to hold your money. They usually come with a debit card you can use to make purchases with. They can be linked to other types of accounts, such as savings accounts.
Savings Accounts
Savings accounts are accounts that you can use to deposit and hold money in. These are good for keeping funds safe that you don't plan on using straight away. This means that savings accounts don't come with any type of card because they aren't designed for everyday spending.
Make sure you do your research as to what additional charges or fees may be charged to your account. Banks can be very sneaky about charging you fees that you did not originally know about. Being informed about avoidable charges like these can save you thousands of dollars a year.
Interest
Interest is when a bank lets you earn a percentage of your money that you have deposited with them back. It's like free money, but unless you are already wealthy, the amount of interest you'd earn a year is negligible. As well as this, many interest-generating accounts have minimum balance requirements and hidden fees.
Automated Monthly Transfers
You can choose to have some of your income deposited into your checking account and a percentage of it deposited directly into your savings account every month. This can help you manage your money by limiting unneccessary spending, as well as helping you save emergency funds.
More Resources:
You've Been Turned Down For a Checking or Savings Account. Now What? - a guide on what to do if a bank turns down your request to open an account
Webster Opportunity Checking - checking account option for those with bad banking history
Varo Second Chance Banking - banking option for those with bad banking history