If you don't have a bank account, you may be thinking about which is the best one to get.

Money jar spilling coins. Photo by Michael Longmire on Unsplash

Banks have many products and services for new customers like you but when it comes to keeping your money at a bank, the options are quite simple.

Step 1: Determine If You Are A Spender Or Saver

Look back over the past several months:

  • How often do you use cash versus your credit cards?

  • How many other pre-authorized transactions happen each month, like rental payments, phone bills or membership fees?

  • Has your cash balance grown, shrunk or stayed the same?

Shopping bag Photo by Jacek Dylag on Unsplash

These answers will help determine which type of account is best for you.

Step 2: If You're A Spender, Consider A Checking Account

As a spender, cash withdrawals, debit card transactions, and pre-authorized payments will be happening in your bank account. Checking accounts support these types of spending behaviors the best.

A person swiping a bank card into a pay terminal

Checking accounts:

  • allow for a good number of transactions and checks for free

  • allow for a good number of withdrawals for free

  • are accessible by ATM machines and mobile banking apps

Step 3: If You're A Saver, Consider A Savings Account

If more money stays in your account than goes out each month and transactions are minimal, a savings account is a perfect choice for you.

I love saving money

Savings accounts offer:

  • Better interest rates than checking accounts

  • Easier monthly reconciliation because there are fewer transactions

  • A safe place to build your savings to attain a future goal, like a big ticket purchase

Quiz

You make around 50 transactions a month on average. Which type of account works best for you?

Take Action

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One of these accounts is for you! It just depends on your financial habits and goals.

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This Byte has been authored by

MY

Michael Younder

Renaissance man.