Types of Accounts
- Checking Account: For daily spending. Comes with a debit card & checks. Often low or no interest.
- Savings Account: For storing money. Pays interest. Withdraw less often.
- Certificates of Deposit (CDs): Lock money for a set time for higher interest.
- Money Market: Hybrid savings with higher minimums and check-writing in some cases.
Fees & Interest
- Monthly maintenance fees: Some banks waive with direct deposit or minimum balance.
- ATM fees: Out-of-network withdrawals may cost extra.
- Overdraft fees: Charged if spending exceeds your balance (you can opt out).
- Interest (APY): Savings earn a percentage yearly — look for high-yield savings (online banks often better).
Tip: Set up alerts for low balance and large transactions.
Debit Card vs. Credit Card
- Debit: Spends from checking balance immediately. No interest, but limited protections.
- Credit: Borrowed money; pay monthly. Can build credit history, but interest if unpaid.
- For bills & subscriptions, use the method you track best. Always monitor statements.
Choosing a Bank or Credit Union
- Low fees and easy fee waivers
- High APY for savings (compare online banks)
- Convenient ATMs/branches or strong mobile app
- FDIC/NCUA insurance (protects deposits to legal limits)