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Types of Savings Accounts

When a person enters a bank to open a savings account, it is very easy to get very confused very quickly by all of the options banks now offer. It used to be that there were very few bank account types available. Now is a completely different story.

The first, most basic, type of savings account is the basic personal savings account. This is what most people think of when they open an account. It is perfect for people who just want to take money out of their checking account and put it somewhere where it will collect some interest. There is frequently a very low amount of money required to open the account and there is a relatively low interest rate.

Special personal savings accounts are available for individuals who want to deposit slightly more money. Banks typically give this account a fancy sounding name so that it sounds prestigious. This type of bank account has a much higher opening minimum and a higher interest rate.

Money market accounts work a lot like checking accounts. The minimum opening deposit is higher than a basic savings account but has less of a minimum than special savings accounts. The interest rate is higher than a basic savings account and similar to the special savings account. This type of account comes with a limited number of checks each month so that if a car breaks down, there does not need to be a transfer from the savings account to the checking account.

Certificate of Deposit (CD) is a type of account known to cause people great fear. These accounts work like a savings account with a minimum opening deposit. The thing about CDs is that the money cannot be touched without penalties once it is in there. CDs work for a period of weeks to a few months even to years.

Contact a Boston Bankruptcy Attorney

If you are in a scary financial situation and are considering filing for bankruptcy, contact the Boston bankruptcy attorneys of Joshua Spirn & Associates at 1-800-975-5346.