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What bank accounts should you have and why

manatdesk19160745.jpgThere is no specific bank account that you should have, but you do want to have at least one bank account. Having a checking account will give you the option of writing your checks to pay your bills, but with online bill pay, you can even use a savings account to pay your bills.

While it is not important about what type of bank account you have, you want to have at least one or the other. The reason that it is important to have a bank account is because moving money around is easier with a bank account. To pay somebody all you need to do is write a check to that person, the person then submits the check to their bank for deposit and their bank submits it to yours to receive the funds. Only you can decide which type of banking account is going to be right for you. Here is a look at the different types of banking accounts that you can have and why you should have them.

Number one: Checking account

A checking is a great account to have because it can be used for everyday activities. You can use a checking account to deposit checks and pay bills. Checking accounts come in a variety of forms, so you will want to compare the different ones to make the best choice. When comparing checking accounts you want to look at the monthly fees, minimum balance requirements, if there is any and any interest that is being paid on your account balance. Checking accounts are needed if you plan to go with direct deposit for work. Direct deposit is great because your funds will be available quickly, and you can avoid having to go to the bank. Checking accounts also give you the option of online bill pay.

Number two: Savings account
Having a savings account is a good idea if you want to save money because the savings account will pay interest on your account balance. What you need to know about savings accounts is that even though you can use them to pay bills, they are not designed for frequent withdrawals. Savings accounts are great for people who have a poor banking history or problem credit because you cannot make frequent withdrawals. Having a savings account will allow you a safe place to keep your money, but it will also help you establish a good relationship with a bank so that you can open a checking account in the future.

If you plan to use your savings account like a checking account, you need to be prepared for the extra fees for the transactions. Most savings accounts require you to keep a minimum balance. The one thing you need to be aware of with savings accounts is if you use them like a checking account you run the risk of the account being closed or converted to a different type of account because you are violating the banking regulations.

When it comes to bank accounts you should have at least have a checking account or savings account. Having one or the other is the best way that you can safeguard your money. Placing your money inside of a savings account or a checking account ensures that your money is safe because both accounts insure your funds up to a certain amount. Banks use the FDIC to insure your funds up to $100,000, while credit unions use a different insurance method, which is a pay as you go method. You can also open up special accounts, such as CDS or business accounts to meet your special needs.

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