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"A penny saved is a penny earned" or so they say...
But you want to save more than a few pennies, so your piggy bank won't be enough. You need a bank account!
Ask yourself the right questions to find out which type of account meets your needs.
Why Do You Want A Bank Account?
Do you want to...
not carry cash?
pay bills online?
keep your money safe?
make your savings grow?
Did you know?
Where Should You Keep Your Money?
Physical Banks:
They've been around the longest
You can visit them in person for transactions and questions
Many offer online banking options to make deposits, pay your bills, etc.
Their fees are typically higher than those of online banks and credit unions
Online Banks:
They're strong competitors to traditional banks
You can only contact them online or by phone
Depositing and withdrawing cash can be challenging
Their fees are usually lower than regular banks and credit unions
Credit Unions:
They're non-profits and maintain strong relationships with their communities
You can visit them in person for transactions and questions
They may have limited banking services and options
Their fees are traditionally lower than those of physical banks
Quiz
Ryan needs a bank. He wants to go with an online option since he's tech savvy and plans to use his phone to manage most of his transactions. But he's concerned about not having access to ATMs when he needs cash. What's the best option for him?
An online bank is still the best option for Ryan! Most online banks are part of ATM networks-like Allpoint or MoneyPass-which have thousands of fee-free machines from coast to coast, so he shouldn't worry!
Did you know?
What Type Of Account Should You Open?
Most people have one or both of these two types of accounts:
Checking Account
Best for everyday spending money
Allows for numerous deposits and withdrawals
Not much interest, if any
Higher fees
Savings Account
Best for emergency funds
Allows for more limited deposits and withdrawals
Higher interest rates
Lower fees
Some banks waive some of their fees if you keep a minimum balance and/or set up a direct deposit!
Quiz
Lucy isn't sure what kind of account she wants to open. She'd like to pay bills online, but also put away some of her monthly paycheck towards buying a car. Which account is the best fit for her needs?
It's both. Checking accounts offer convenient ways to make payments, deposits, transfers, etc. so they are ideal for everyday transactions. Savings accounts can help you put away money for large purchases or for an emergency, and their higher interests can make your money grow quicker. You can open both types of accounts in the same bank, link them, and easily transfer money back and forth between them to cover your needs!
Take Action
Are you now ready to choose a bank account?
Check out these Bytes for more banking advice:
This Byte has been authored by
Alicia Viera
Learning Experience Designer