Exploring Some Common Types of Checking Accounts
It seems as though everybody has struggled to answer the age old question of, “what kind of checking account do I need?” You may not realize it, but there are a number of different types of checking accounts that come with different advantages and policies. Before you choose one, it helps to have an understanding of their basic differences. So, if you’re asking yourself, “what kind of checking account do I need?” then you’re in luck — here’s a quick rundown of some of the most common types of checking accounts.
Personal Checking Accounts
As one of the most prevalent types of checking accounts, this type allows you to deposit and withdraw money as you see fit. It’s generally used as an umbrella term that includes various types of online accounts as well as both free and paid checking accounts. There are often various bonuses and incentives that come with personal checking accounts, depending on the bank you choose.
Business Checking Accounts
Business checking accounts, as their name implies, are ideal for those opening a business because they help to keep finances separate. But more importantly, a business checking account is efficient for tracking financial records which you’ll need to file your business taxes every year. While some banks charge a fee to operate a business checking accounts, others have parameters such as minimum balances that can waive the fee. But the bottom line is that it’s important for all business owners to separate their personal and business finances and open a business checking account if they want to make things easier year round.
Second-Chance Checking Account
As a less common type of checking account, this account is designed for those who may not be eligible for a standard checking account as a result of bad credit or financial history. Though these accounts may initially have higher fees and more stringent rules, most banks allow you to seamlessly transition to a standard account once you’ve improved your financial situation.
About 6 million people are behind on their car payments by 90 days or more, and choosing the right checking account can help you balance your budget and stay on top of all of your bills and finances. For more information about other banking services, contact First Bank of the Palm Beaches.