Types of Banks
There are different types of banks and personal banking services providers you may want to review before making a decision on where to put your money.
Digital Banks
Digital banking and online banking providers are taking over the more traditional banking. These banks, which are not always banks per se, offer the same services as a traditional bank but they have no branches or offices and everything is done online or through your mobile app. Even if they are no traditional banks, they usually hold your money in an insured and regulated account that is held at an FDIC-insured bank. So you can get the benefits of managing your finances from anywhere and the peace of mind of your money being regulated and insured.
Ethical Banks
There is a banking trend in the last few years where people are choosing to bank or purchase, or basically spend their money where their values are. These ethical companies or banks usually support a cause like helping the environment, or will not use your money to fund initiatives that go against the cause they support. This does not mean they are not interested in making a profit, however they won’t do it at the cost of their principles.
Minority Banks
As their name states, these financial institutions are usually owned by an ethnic minority, or at least most of it. There are different categories for minority banks, one of them being Black-Owned Banks.
Community Banks
Community banks benefit their local communities where they operate. This means that they invest and support members of their community to access financial resources like mortgages, personal loans, or credit cards.
Credit Unions
A credit union is a not-for-profit, member-owned cooperative institution that provides financial services to its members. Like a bank, a credit union accepts deposits, issues loans, and offers a suite of other financial products.
Banks For Personal Banking
View here some banks and digital banks offering personal banking services like savings and deposit accounts:
Read this MoneyLion review about the financial app's key features, from investing and direct deposits to rebuilding your credit score.
BankMobile is the first fully digital bank, aiming to provide a robust financial platform to help your finances flourish.
Aspiration offers socially-conscious and sustainable cash management services and investment products, so you can make money while making the world a better place.
Learn how the Step banking app allows teens to save money, track spending, manage savings goals and build credit.
Types of Bank Accounts
There are different types of bank accounts you need to understand before opting for the best solution for you.
1. Checking Accounts
A certificate deposit (or CD) Account is a type of savings account, federally insured. This means this type of account is “risk-free” since the money is insured. They usually don’t have monthly fees and comes with a fixed interest rate. You will deposit the money a fixed period and get back the deposited money plus the earned interest at the end of this term. Some top CD accounts can pay higher interest rates than other savings accounts, including money market ones. So if you are looking for a low-risk high interest savings account you may want to look into this option as your next banking step.
2. Savings Accounts
You work hard to earn your wages, what if you could maximize the money you are saving to make more money? This is exactly what savings accounts do for you. The higher the interest rate and the more money you save, the more interest you will get back for your savings. So, are you simply storing your money at the moment? Find a high-yield savings account that will give you the highest interest rates for the money you are saving. But what does it really mean “high-yield”? The more money you save, the more interest you will earn. Sounds like the best “banking” dream: earning money while you sleep. Start making the most out of your savings today.
3. Money Market Account
A Money Market Account is a deposit account that will pay interest based on the interest rate and the money you have store. Therefore, it’s very similar to a savings account, but has some features same as a deposit account. They usually require a higher deposit that a regular checking account and or require higher minimum balances. However, the benefit of having these type of account is that you can earn more money for your savings, as they usually have higher interest rates than other savings accounts. Make the most of your banking opening a Money Market Account today and start earning money off your savings.
4. CD Accounts
There are a lot of checking accounts to choose from, traditional bigger banks, credit unions, digital new banks… the options are wide. Learn about the different perks different banks and financial institutions offer: from no monthly maintenance fees to getting paid earlier, find out what it is that you are looking for in a checking account.
