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.

Checking Account 

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

A money market account is a type of savings account that pays higher interest rates in exchange for higher minimum balance requirements.

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)

Individual Retirement Account (IRA)

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.