ACCOUNT – an amount of money deposited with a bank, as in a checking or savings fund.
Definition provided by Dictionary.com
How To Use
As defined above, an account is an amount of money deposited with a bank. One of the most commons types in use is the checking account. This particular type allows a person to hold funds with the bank and use them with little to no limitations. Prior to modern technology the best way to facilitate payment with these accounts were by use of checks, hence the name. This prevents an individual from having to carry large sums of cash to make purchases. These days, one can access the funds for a transaction by use of a debit card, a card linked to the checking account.
The benefits of having this fund extend beyond having a direct access to the money. With the aid of transaction reports and bank statements a person gains financial oversight. Without any additional labor, one will know where, when, and how the money gets spent. Furthermore one will find that having an account provides better security for the funds acquired, in the event of foul play. Lastly, in some cases the bank may pay interest on the money deposited which ultimately helps increase wealth.
Not all of these options are free. In fact, most banks require a minimum balance or set amount of direct deposits into the account. If a person does not meet these requirement they will be subject to monthly fees or penalties from the institution.
The options provided below provide a little more detail on how each account works and what benefits they offer. For more information speak with your local bank representatives.
Checking – funds linked to debit cards or personal checks
Savings – funds put aside for larger goals, higher interest rates
Money Market Account – fund with interest rates higher than ordinary savings
Traditional IRA – tax deductible investment fund
Roth IRA – investment fund that allows for tax free capital gains and interest