(BPT) - By Golden 1 Credit Union
With inflation and interest rates at an all-time high, it's important for consumers to explore financial options that can help them grow their dollars. Most financial institutions offer multiple bank account options so members can choose the ones that best align with their personal financial goals. This may include checking, savings, money market, or certificate of deposit accounts. While people may understand the difference between the various types of bank accounts available, some may not realize there are also typically several options when it comes to choosing the best type of checking account to fit their needs.
Generally, checking accounts are among the most common accounts, as they are used for everyday transactions and give you easy access to your funds so you can conveniently make payments, pay bills, and withdraw from ATMs without accruing additional charges associated with transferring from other accounts. Checking accounts typically come with a debit card for making purchases or cash withdrawals, paper checks, and can be linked to other types of bank accounts. Many financial institutions also offer free checking accounts that don't require monthly fees or have deposit minimums, while offering the same convenient banking options, such as online, in person, or through a mobile app.
There are also often checking account options for students or teenagers. These accounts are designed to be user friendly to help teens and young adults learn how to effectively manage their money. Depending on the account, some might require a parent or guardian to sign as a joint owner. As teens and students begin to learn more about finance, they can reassess their options and change their checking account to one that works best for them and their financial goals. Some student checking accounts may also offer other benefits, such as rewards or money-matching perks.
For those who tend to keep larger sums of money in their checking accounts, there are options to ensure your money continues to work for you, beyond just opening a savings account. Many financial institutions offer high yield checking accounts, which offer higher interest rates compared to traditional checking accounts. While they might require a higher minimum balance like a savings account, they are designed to help account holders grow their interest quicker. This is likely top of mind for many consumers as interest rates have continued to rise, leaving many to wonder what this means for them financially. However, these rate increases could benefit those who choose high-yield accounts and receive higher interest on their checking as well as other accounts.
At Golden 1 Credit Union, we offer a variety of checking account options including MarketRate Checking and Premium Checking, which allow our members to get more for their deposits if they maintain identified minimum daily balances. With these checking accounts, members still receive some of the same benefits as well as earning the dividends of a higher earning savings account.
There are many banking options available, but you should determine the proper accounts that would best help you reach your financial goals. No matter where you bank, find the account that works best for you, keeps your money safe, and gets you the most for your money.
