Savings Accounts
Among the most familiar bank services to a majority of Americans are ordinary savings accounts, in which they can place their hard-earned money and know that it will be both safe and available on request. Savings accounts, like most other accounts, are insured by federal agencies — the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC) — for up to $100,000 or by state insurance agencies for amounts set by state law. Traditionally, savings accounts have paid minimal interest, but this is changing, too. Savings accounts come in several forms. The main of them are:
Checking Accounts
In the not so distant past, checking accounts were also thought of as a convenience to the customer and paid no interest. In return for the privilege of writing checks, a so-called “regular” checking account required a customer to maintain a minimum monthly balance in order to avoid a service charge or per-check fee. A “special” checking account did not require a minimum balance, but the bank levied both a monthly service charge and a per check fee.
Today, however, competition among banks has resulted in a variety of checking accounts, among them NOW accounts (Negotiated Orders of Withdrawal), which offer the customer an opportunity to combine the thrift advantages of a savings account with the convenience of checking. To learn more about checking account types follow the next links:
- Regular Checking Accounts
- Special Checking Accounts
- NOW Checking Accounts
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