Banks often provide a variety of checking account options to ensure clients can create a personalized financial plan. These include changes in statuses, signers, usage and limits, all facilitating a specific kind of banking experience for the account holder. Here is a rundown on some of the different variations of standard checking and savings accounts, to help you get an idea about various options and possibilities. Talk to your financial advisor if you have any questions about other needs you might want an account to fulfill.
Exactly the same as a standard checking or savings account, a joint signership means an account will display two names or more, giving named persons the ability to view records. Both named parties can add and withdraw funds, monitor transactions at a branch or with online banking and write checks from qualified accounts, Bankrate wrote. These are good options for minors in need of supervision, elderly couples concerned about probate or people making joint financial investments like partners or married couples.
Youth savings accounts
Setting aside money for a child is the first step in investing for his future. These accounts are usually started young and accumulate credit more quickly than standard savings deposits, but the number of withdrawals is sharply limited as compared to a regular account. Think of these as a long-term investment like a CD or money market. College funding is a common goal when opening accounts like this.
CD or money market account
As previously mentioned, these funds take longer to mature and therefore can't be withdrawn on an at-will basis like they could be from a standard checking account. On the other hand, though, the payout for patience is a much higher interest rate. If you have $5,000 in your savings account reliably at the end of each month with some to spare, having a secondary savings account might be worthwhile.
Holiday or special savings
Some banks offer accounts that are only active for part of the year. Holiday accounts offer slightly higher interest rates than standard savings accounts, but most banks will charge a fee to withdraw money before October or November. These plans are designed specifically for building up cash for holiday shopping, though some banks will offer the option of different end dates. If you're saving for a vacation, a new camera or some other more expensive item, these are a good options.