There are several types of bank accounts available in the US:
- Savings account: This is a basic account that allows you to deposit and withdraw money, earn interest on your balance, and access your account through an ATM or online banking platform.
- Checking account: This is a type of account that is typically used for everyday banking needs, such as paying bills and making purchases. Checking accounts generally do not earn interest and may have higher minimum balance requirements than savings accounts.
- Money market account: This is a type of account that combines features of both savings and checking accounts. Money market accounts generally offer higher interest rates than savings accounts, but they may have higher minimum balance requirements and may limit the number of transactions you can make each month.
- CD (certificate of deposit) account: This is a type of account that allows you to deposit a lump sum of money for a fixed period of time, typically ranging from a few months to several years. The deposited amount earns interest at a fixed rate, and the account cannot be accessed until the maturity date.
- IRA (individual retirement account): This is a type of account that is specifically designed for saving for retirement. There are several types of IRAs, including traditional IRAs, Roth IRAs, and SEP IRAs, each with its own rules and tax implications.