Explain The Different Types Of Financial Accounts?

There are different kinds of financial accounts. The bank offers many varieties. Firstly, a checking account is a bank account that uses checks as the primary instrument for withdrawing money. With a checking account, you can make purchases, pay bills, and give or loan money to anyone you choose. Secondly, a savings account is another type of bank account that allows the holder to make deposits and withdrawals. Holders of this type of bank account are limited in the number of withdrawals and deposits they can make each month. Many financial institutions allow savings account holders to make deposits and withdraw funds through ATM though money can't be withdrawn through checks. Thirdly, a money market account, this type of bank account pays interest at a higher rate than the rate paid on interest-bearing savings and checking accounts. The minimum required balance on a money market account is usually higher than that imposed on a checking or savings account. And fourthly, some also offer basic, no-frills bank accounts. A no-frills bank account may allow the holder to pay bills and cash checks without paying the high fees associated with completing such transactions without an account for a limited period.

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