Bank accounts take the form of savings accounts, checking accounts, money market accounts and certificate of deposits. Each is designed to meet a specific purpose. From daily spendings to savings in the long term, there is one to meet your every need.
It is best that you weigh your needs and then choose the type of account. Usually, the choice is driven by factors like interest rates and the accessibility to funds.
Let’s check out which type of account suits you the best based on what these accounts have to offer.
Savings Accounts
If you want to earn some interest amount while enjoying easy access to your funds, savings accounts will serve you well. In fact, some banks offer pretty good rates. The best part about savings accounts is they have the federal backing.
The only hitch with operating savings accounts is there is a restriction on the number of transactions in a month. If you transact through online banking, federal regulations stipulate that you can take money out of your savings account only six times a month.
If you are one of the many who is happy with interest earnings combined with safety, this is your obvious choice.
Checking Accounts
If you want to draw moneys for your daily spending, checking accounts are the best. The basic checking accounts don’t give you much interest. Interest bearing checking accounts do give a comparatively better interest rate.
With easy access to your funds, you can make transactions through ATMs, online transfers, personal checks and debit cards.
If interest is not your main concern and you prefer to have unlimited access to your funds, checking accounts are your best bet.
Money Market Accounts
These accounts fetch you higher returns, more so than savings accounts. But the caveat is you need to maintain a higher balance. The minimum balance in such accounts must be $1000 upwards. These accounts come with paper checks and debit cards as well. They offer you a comprehensive set of banking services including ATM access.
These accounts are flexible and fine tuned to meet your requirements. On some types of withdrawals, there is a limitation of up to six transactions per month.
Certificate Of Deposits
These are also called Time Deposits. The interest rates are linked to the tenure of the deposit. Longer tenure CDs fetch higher interest rates. Generally, the CD tenure varies between 3 months to six years. While the attractive interest rates can entice you to open these accounts, do keep in mind, that access to your funds is limited.
In case of premature withdrawal, you will have to shell out a heavy penalty. The perfect technique to enjoy the high interest while avoiding penalty is by laddering CDs.
Hold CDs of varying tenures, depending on your liquidity needs. While the short term CDs ensures cash flow, the longer duration CDs help you earn a higher interest rate. This way, you won’t have to break the CDs and pay a penalty fee.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.