1. Types of Bank Accounts Checking – The owner of the account can make deposits, withdrawals and write checks against the balance Savings – The owner of the account can make deposits and withdrawals. Usually earns interest

2. Types of Bank Accounts Money Market – The owner of the account can make deposits and limited withdrawals. Can also have a checking element – The interest rate earned is based on underlying investments, such as T-Bills, Bonds or Notes – These underlying investments provide, making a Money Market a less risky investment that earns more than a savings account

3. Types of Bank Accounts Certificate of Deposit – Like a savings bond. You deposit money for a fixed period (“term”) and are paid a fixed interest rate – Like a Money Market, the interest rate earned is based on underlying investments, such as T-Bills, Bonds or Notes – Unlike a Money Market, your cash is lock up for the full term and there are penalties for withdrawal – The term can range from 1-month to 10 years. The longer you have it in, the higher the interest rate

4. Types of Bank Accounts Brokerage/Investment – Can contain Stocks, Bonds, Mutual Funds, Money Markets, CD’s (Certificates of Deposit), Options – May also have a checking feature – Money can be taken out at any time, but it means selling the underlying investment, perhaps at a loss – Any earnings on money are taxed

5. Types of Bank Accounts IRA – Individual Retirement Account. The owner of the account is saving for their retirement – The money made on investments is not taxed until you take it out – All kinds of investments can be included in a retirement account, but some are not allowed (such as life insurance) – You can’t access the money before retirement without paying a penalty (10%) and taxes