Different Options Available at the Local BankIn light of the economic downturn of 2009, many people are paying closer attention to their money. Whether controlling their own investments, reducing the amount invested or simply monitoring the nation's financial ups and downs more closely, concerned citizens across the country have begun to take a more involved role in their financial futures.
Perhaps no one could benefit more from this increased awareness than the nation's young people, who have witnessed firsthand the perils that can result from a faltering economy. That said, young people would be wise to investigate just what their bank offers with respect to individual accounts. The following are some of the basic accounts nearly every bank offers.
* Checking account. Checking accounts allow account holders to make purchases, pay bills and even transfer money to a different account at a different bank. With a checking account, the primary means to withdrawing money is a personal check. Many banks do not allow cash to be withdrawn from a checking account at a teller's window, though banks do allow account holders with an ATM card to withdraw money at an ATM machine. If an account holder must withdraw money from a checking account a teller's window, oftentimes the bank requires the account holder to write a personal check made out to himself or herself. There is typically no limit to the number of withdrawals or purchases an account holder can make through his or her checking account.
* Savings account. Savings account are typically more restrictive than checking accounts. While banks do allow withdrawals and deposits from savings accounts, oftentimes the number of withdrawals are limited, and an account holder may incur penalties (such as a set fee) if he or she exceeds the withdrawal limit. Savings account holders cannot access their money via check.
* Money market account. Money market accounts often mandate a minimum balance, but such accounts do boast higher interest rates than savings or checking accounts. Much like savings accounts, money market accounts limit the amount of cash withdrawals each month, and also place restrictions on the number of check withdrawals as well. However, such limits are often not a problem for money market account holders, as these are often seen as more investment-geared accounts and not typically relied on for everyday expenditures.
* Certificates of deposit (CDs). A CD requires an account holder to make a deposit and leave money in an account for a specific amount of time. CDs typically pay a higher interest rate. Penalties for early withdrawal are relatively standard, though some banks allow account holders to withdraw interest, so long as the principal amount remains in the account until the established term is over.