When starting on your personal financial management journey, it is important to understand the various options a Community Bank or Credit Union can provide to help ensure that your personal financial goals are met. Identifying your objectives is key to deciding what type of account best fits your needs.
The two type of basic accounts you will oftentimes find offered at your financial institution of choice are checking and savings accounts, which differ by the features & type of services they provide;
A checking account gives the holder an ease with which one can access their funds. After all, accessibility and ease of use is what we prioritize.
Keeping your funds secure, a checking account gives its user the opportunity to deposit checks for incoming funds, pay bills or vendors and have access to cash through ATM withdrawals. Furthermore, you are able to easily manage your funds and the bank will issue a debit card, which will also follow for you to pay your expenses. Whether you are sending or receiving wires, paying for your utilities or depositing your payroll, a checking account is a great solution.
Moreover, Community Banks and Credit Unions will, oftentimes, have various type of checking accounts available, based on a number of factors such as: personal checking vs. business checking or the amount of funds the customer can maintain in the account. Based on this, the fees for the checking can be waived or lowered, depending on the financial institution of your choice.
Ultimately, the best choice for the checking account comes down to the features that you, as a user and client, are interested in and the features you would like to take advantage of. The Community Bank or Credit Union is there to serve you …
On the other hand, a savings account provides their account holders with a way of saving funds for a later time, with accumulating interest on the funds being preserved. The interest rate, depending on your account type and features, can compound on daily, weekly, monthly or annual basis. Each financial institution can have a number of different type of savings accounts, which can vary by the fees you may be paying, the actual interest rate you will receive, minimal funds that are to be in the account and the accompanying way in which the interest is calculated. Unlike a checking account, a savings account gives the account holder limited access to the funds, as they are oftentimes used to help protect and accumulate wealth for the future or for a large purchase or emergency. Having a savings account is a great way to build on your net worth and make sure that that you have a financial safety blanket.
Based on the difference in the two types of accounts, it is sometimes beneficial to open a checking and savings account with your financial institution to reap the benefits of both. With this, you, as the account holder, can have ease of use and access to your funds in the checking account, while still building on your savings.
Bundlefi can help …
Ready to start saving for your future?
We can connect you with Community Banks and Credit Unions that offer both, checking and savings accounts.