Bank accounts that allow you to add money to the account are called deposit accounts. Checking and savings accounts are two examples of deposit accounts.
Checking Account
A checking account is an account that lets you write checks to pay bills or to buy goods and services. The financial institution takes the money from your account and pays it to the person named on the check. The financial institution sends you a monthly record of the deposits and withdrawals made. This is called a BANK STATEMENT.
Savings Account
A savings account is an account that earns interest.You can open a savings account with a few dollars and then deposit more money to your account over time to earn more interest and build your savings. Keep in mind that if you make a lot of withdrawal from your account over time and your balance falls below the amount set by the bank when you open the account, you might have to pay a monthly fee.It’s a good idea to compare the rules of different accounts. For example, financial institutions might require you to have a certain balance to open an account, earn interest, or avoid fees. This is usually called a “minimum balance.”
