Types of Bank Accounts and Their Functions

Savings Account

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A checking account is a transactional account that provides access to cash, facilitates the payment of bills, and enables the writing of checks.

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Money Market Account

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A CD is a type of savings account that offers a fixed rate of interest for a set period of time, usually ranging from a few months to several years.

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An IRA is a savings account specifically designed for retirement savings. There are two main types of IRAs: Traditional and Roth.

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Escrow Account

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Payroll Account

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Business Bank Account

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Types of Bank Accounts and Their Functions

Savings Account

A savings account is an account that earns interest on the money deposited in it and is designed to help people save money.

A checking account is a transactional account that provides access to cash, facilitates the payment of bills, and enables the writing of checks.

Money Market Account

A CD is a type of savings account that offers a fixed rate of interest for a set period of time, usually ranging from a few months to several years.

Certificate of Deposit (CD)

An IRA is a savings account specifically designed for retirement savings. There are two main types of IRAs: Traditional and Roth.

Escrow Account

An escrow account is a trust account used to hold funds until a specific event occurs, such as the completion of a real estate transaction.

Payroll Account

A payroll account is a checking account specifically designated for an employer to deposit an employee's salary into.

Business Bank Account

A business bank account is designed for the specific needs of businesses, including separate transactions and the ability to accept payments.