Different types of bank accounts explained

Savings

Interest to encourage saving money. Usually higher interest than checking acct, but lower than CDs. Can deposit & withdraw, but not usually write checks or use Debit card.

Basic Checking

Allow for basics like checks and debit cards. Not much else, like interest. Limit certain behaviors.

Interest-Bearing Checking

Provide interest, but cost more than basic checking. Usually have a minimum balance and have fewer restrictions.

Money Market Deposit (MMDA)

Higher minimum balance. Restrictions on what you can do. Invest your money in short term debt

Certificate of Deposit

Required to leave money for set amount of time. Higher interest rates for longer periods. Safe investment. Penalized for early withdrawal.

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