At first, opening bank accounts may seem like an intimidating task. With all the minimum balances and high-interest rates, it is easy to be discouraged to open one. Although it may seem daunting at the start, this is a necessary step for us to take in properly managing our finances. Many of us are beginners when it comes to financing, and that is totally understandable!
Here is a guide to some of the easiest bank accounts you can open and the reasons why they are so simple to maintain.
This is a deposit account with a bank or other financial firm that allows the owner to make deposits and withdrawals. A checking account is easy to open and maintain because the holder has unlimited access to the money stored in the account. In addition to this, attaining a high-interest rate when opening this kind of account will not be a concern as a holder. This is actually one of the most commonly owned accounts that people have in order to track the circulation of their funds.
This is an interest-bearing deposit account held at a bank or other financial institution. Though a savings account typically pays a modest nominal interest rate, its safety and reliability make it a great choice for storing funds for short-term needs. The interest rate is a small price to pay, but it will definitely reap great benefits. This account is also very common, and a great way for people to set money aside for future use.
Money Market Account
This is an interest-bearing account at a bank or credit union. A money market account is somewhat a combination of both a checking account and a savings account. It benefits the holder because of how low maintenance it is. This kind of account requires only limited access from the holder every month for it to be maintained. A money market account is perfect for people who do not want to own too many bank accounts and do not have a lot of time in their hands.
Certificate of Deposit
This is a product offered by banks as well as credit unions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time. A certificate of deposit is beneficial to the holder because it gives one a secure way of investing money for a set amount of time. This type of account is great for individuals who are interested in getting investments but want to play it safe at the same time.
Opening and managing bank accounts may be confusing at first, but it becomes a piece of cake once you understand each account’s advantages and pick the one that fits you best. The most convenient type of account depends on the holder, it is different for everybody. Just take your time and explore what will fit your financial needs most.