The “best” account for you is highly personal. It will depend on how you want to use it, and how often you plan to access your money. If you want to grow your money and don’t to use it for a fair amount of time, put it in a CD.
If you might need access to your funds quickly, then a savings account could be a good option for you. But if you’re just going to be paying bills, a checking account is probably your easiest choice. However, if you only write 2-3 checks a month, an MMDA could suit your needs very well. They have a higher rate of return, but also have a higher minimum balance requirement.
Checking accounts of any variety can be very useful. They simplify your record keeping because the canceled checks generated with your monthly statements serve as receipts at tax time. Moreover, your checkbook register – whether physical or virtual – is an easy way for you to keep up with monthly expenses.
Banking institutions have a variety of fees and features associated with each of their accounts, and they’re all a bit different in their offerings, so it’s important to find out what these are before you choose a bank and decide which type of account you’ll use.
Get the most out of a checking account by knowing the minimum balance and then make sure you always maintain that amount or more. A checking account that pays interest is an added bonus, if the fees are also low. A good idea is to look for a bank whose offerings allow you to distribute funds into both checking and savings accounts which are considered together for reaching the required minimum balance.
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