Five Types of Bank Accounts
January 26, 2021
There are numerous bank accounts types with unique terms, fees, and features. Before you open your next account, be sure you know your options, as being prepared can make a big difference in how you manage your finances. To better understand where to store your money, take a closer look at the types of bank accounts most commonly available and how they work:
Traditional Checking Accounts
As the most common option, traditional checking accounts allow you to deposit money and write checks. You can access an ATM or online account to manage them. Some traditional checking accounts have maintenance fees, but those may be waived if you maintain a certain balance. For that reason, it is critical to learn the costs associated with these accounts before choosing one.
Interest-bearing accounts have interest that builds on the balance you keep in them. These types of funds typically have higher fees, especially if your balance goes below their minimum requirement. Money Market accounts limit the number of transactions you can do monthly, based on federal regulations. If you maintain the cash, you will benefit from the interest applied to your account, which may be competitive to traditional savings accounts.
Business Checking Accounts
These are geared specifically to those who need an account to manage their business transactions. You will be able to make and receive electronic payments, make transfers, write checks and even earn interest or credits. We usually suggest that every business owner have an operating account for each entity they own, and prevent comingling their assets.
Choose those that fit your needs in terms of cash deposits and look for the minimum balance requirements. Not all have this; however, most business checking accounts will have maintenance fees for them.
Private Bank Checking
Every customer at New Valley should get Private Banking perks. This means refunding ATM fees, option of interest bearing checking accounts, and most importantly a dedicated banker. Also, you will be able to leverage our best in class digital tools and monitor your spending with our in app budgeting and alerting tool.
Let Your Community Banking Leaders Help
Managing your investments and navigating the various types of bank accounts available doesn’t have to be confusing. Working with our team makes the process simple. Reach out to New Valley Bank today to learn more!