Choosing the Right Bank

What type of bank account should you open? The answer depends on how you plan to use the bank account. If you want to build up your savings and you think that you will not need your money soon, a certificate of deposit may be the right type of bank account for you.

If you need to reach your money, however, a savings or checking account may be a better type of bank account for you. You will probably find that a checking account is best for you if you plan to write several checks each month (for example, to pay bills). But if you usually write only two or three checks each month, then a money market account might be a better deal. Money market accounts usually pay a higher rate of interest than do checking accounts, but minimum balance requirements for this type of bank account are often higher as well.