Understanding the Different Types of Bank Accounts

There are a variety of different banking accounts that people can take advantage of if they plan to invest in themselves with a new banking system. The wonderful thing about Addison is that you can take advantage of these different banking accounts at many area institutions, including Guaranty Bank & Trust in Addison.

Understanding the Different Types of Bank AccountsChecking Account

A checking account is the most common/basic account you can make at a bank. Most of you already know, but this is where most people have their direct deposits, where bills draw money from directly, and where people can get their money the quickest. Plus, debit cards are usually connected directly to this account as well. The good thing about this account is that there is no minimum amount of money required to set it up, so you can head to a bank and set it up right now.

Savings Account

As the name implies, the savings account is where you put money where you intend to save it. It’s best to have both a checking and savings, as these go hand in hand. If anything were to happen, you don’t want all your money in one account, so having a savings account will help tremendously in an emergency. If you plan to make a savings account, look for places that don’t have maintenance fees, and also look for online access.

Money Market Deposit Account

A Money Market Deposit Account is like having a second savings account, but in this one, you should put your emergency funds up to three to six months ahead of time in this account. If you must dip too deeply into your savings, you can go into this account and pull out more money if needed. Also, this account builds up a nice amount of interest, so if you want to acquire more money by saving, this account is for you.

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