A Guide to Banking Services
Many of the important choices that you make in life concern
financial matters... from choosing investments to shopping for
groceries, money is an important part of everything that you do.
When it comes time to make a decision concerning how you want to
handle your money, it's generally best to know all of the
options that are available to you before you choose a single
option.
Here are a few of the different choices that you should consider
when looking for financial services from a bank.
Savings
One of the more basic banking services available is the savings
account. As the name of the account might indicate, savings
accounts are designed to help individuals save their money while
increasing it with interest.
These accounts are usually limited to a certain number of
withdrawals each month before a penalty is imposed, but are
usually otherwise free of fees and penalties.
The interest rates of these accounts tend to be decent, but are
influenced by national and local rates.
Cheques
Along with savings accounts, chequeing accounts are some of the
most common account types that banks offer. These accounts work
along similar lines to savings accounts, with money being paid
into the account over time... unlike savings accounts, though,
chequeing accounts allow the account holder to access the funds
held in the account by writing cheques or using cheque cards
which are like credit cards that draw upon the balance of the
account to pay for purchases.
Some chequeing accounts offer interest, while others do not.
Account fees and the fees that cover buying new cheques may
apply depending upon the bank and the average daily balance in
the account.
Certificates of Deposit
For individuals who are looking to put aside some money for
later but who want a better deal on their interest, there are
certificates of deposit. These special accounts are designed
specifically for investment, and tend to offer a higher interest
rate than most other types of account.
Since they are intended for longer-term investments,
certificates of deposit only allow money to be withdrawn from
the account at certain times usually once per year, or any time
after the certificate has reached it's time limit.
While some certificates of deposit allow withdrawals to be made
at other times during the year, there is often a fine added for
early withdrawal.
Money Market and Investment
When discussing investments for the future, an important type of
account that is often overlooked is the money market account.
These accounts offer variable rates of interest much like
savings accounts, but the interest accrued by a money market
account is based more off of rates in the stock exchange instead
of the interest rates set by governmental authorities.
Often a money market account will also allow the money held
within it to be invested in various stocks and bonds as a part
of the money market service... this feature makes money market
accounts a great option for individuals trying to plan for the
future.
Loans
In addition to the various forms of bank accounts that most
banking institutions offer, a variety of loans may be available
depending upon your financial needs and the purpose of the loan
money.
Mortgage loans, home improvement loans, automotive financing,
and debt consolidation are all common loan types that are
offered by most banks... other more specialized loans as well as
loans for individuals with poor or bad credit may also be
available depending upon the lender.
You may freely reprint this article provided the following
author's biography (including the live URL link) remains intact: