What Are The 6 Different Types Of Checking Accounts?

Unless you live entirely off the grid, you’ll need a checking account. A checking account is a bank account where you can deposit money and write checks against that money. In other words, it’s a place to keep your liquid assets safe and sound and a way to pay your bills and make everyday purchases. Now that we’ve got the boring stuff out of the way, let’s talk about why checking accounts are pretty awesome. For one thing, they’re incredibly convenient. No more lugging around wads of cash or waiting for days for a check to clear – with a checking account, you can access your money anytime, anywhere.
Plus, most banks offer online and mobile banking platforms these days so that you can manage your account on the go. But convenience isn’t the only reason to get excited about opening traditional checking accounts. Checking accounts also offer a host of other benefits, like safety (your money is FDIC-insured, so it’s protected in the event of a bank failure), interest (some checking accounts earn interest on your balance), and rewards (many banks offer programs that give you cashback or points for using your debit card).
So now that we know all the reasons to get a checking account, let’s look at the different types of accounts.
- Traditional Checking Account
This is also referred to as a standard checking account. It is a bank account that provides easy access to your money and basic features such as writing checks and making deposits. This account does not offer any special perks or interest, but it is a good option for those who want a simple way to manage their finances. There are several advantages to having a traditional checking account, including:
- Ease of use: A traditional checking account is very easy to use, which makes it a good choice for those new to banking or who do not want to deal with the hassle of managing a more complicated account.
- Low fees: Traditional checking accounts typically have low fees associated with them, making them a good choice for those who want to keep their banking costs down.
- Widely accepted: Traditional checking accounts are widely accepted, which means that you will be able to use your account at most businesses and ATMs.
- Premium Checking Account
A premium checking account is a bank account that offers more features and benefits than a traditional checking account. This type of account typically requires a higher minimum balance, but you will receive perks such as free check writing, interest on your balance, and waived fees. Premium checking accounts are a good choice for those who want to get the most out of their banking experience. There are several advantages to having a premium checking account, including:
- More features and benefits: Premium checking accounts offer more features and benefits than traditional checking accounts, making them a good choice for those who want to get the most out of their banking experience.
- Higher interest rates: Premium checking accounts often offer higher interest rates on your balance than traditional checking accounts, which can help you earn more money on your savings.
- Waived fees: Many premium checking accounts offer waived fees for certain services, such as ATM withdrawals or check writing. This can save you a significant amount of money over time.
- Interest Checking Account
Just like a savings account or money market account, and interest checking account accrues interest on the money you have deposited into the account. This type of account typically requires a higher minimum balance than a traditional checking account, but you will earn interest on your balance in return. Interest checking accounts are a good choice for those who want to grow their money while still having easy access to their funds.
- Rewards Checking Account
A reward checking account is a bank account that offers rewards for using your debit card. This type of account typically requires a higher minimum balance than a traditional checking account, but you will earn points or cashback on your purchases in return. For instance, you may earn 1% cashback on all your purchases or 2 points for every $1 spent. Rewards checking accounts are a good choice for those who want to earn rewards for their everyday spending.
- Student Checking Account
A student checking account is a type of bank account designed specifically for students. This type of account often has no minimum balance requirement and may offer perks such as free ATM withdrawals or waived fees.
- Second Chance Checking Account
A second chance checking account is a type of bank account for those denied a traditional checking account due to bad credit or ChexSystems. This type of account typically has fewer features and benefits than a traditional checking account, but it can be an excellent way to rebuild your credit.