What are the types of bank accounts? Currents, savings and payroll

What are the types of bank accounts? Currents, savings and payroll
6 min read
20 September 2022

Do you know the types of bank accounts that exist? What are their differences? In the next post, we will try to clarify the doubts about the different types of bank accounts that we can find and we will show you some of the banks that offer them.

What is a bank account?

The bank account is a financial product through which the holder or holders of said contract can manage their money, through the different forms offered by the entity.

In general, by having a bank account, you will be able to deposit your funds in the bank, and then carry out other actions, such as: transfers, payment of receipts, withdrawals of money through an ATM, payments by credit card, among others.

It is very important to bear in mind that all the movements made, both for the entry and exit of funds, will be registered in the bank account.

Bank accounts are considered as a basic financial product, from which by-products or products such as loans or debit cards can be generated.

Bank accounts: Checking Account

A Current Account is a financial product that allows you to manage your cash in a pleasant, easy-to-use, simple, safe way and, in turn, serves to have cash when we need it. The current account can also be interpreted as a deposit, since we have it when we need it or want to have it.

It is the most common type of bank account that can be found in a bank. In this type of account you can have the money whenever you want and carry out procedures such as: transfers, deposits, payments, among others.

Unlike other types of accounts, this one is not aimed at saving, but is designed to manage money on a daily basis, for this reason, it does not offer any type of return for the money that is saved in it.

Generally, it is subject to some type of maintenance commission or to the operations carried out. It can be canceled at any time, without being penalized, and notifying the bank in advance.

Characteristics Checking Account

  • A checking account is characterized by the fact that we can manage the money through different means of payment, such as checks or, mainly, debit cards. In this way, it is feasible to receive the money with the option of our preference.
  • By having a current account, we can access an overdraft quota, that is, the financial institution in which we have our current account, will enable this option, to use it at the moment that we are most without white.
  • The current account is one of the most versatile and least selective ways, and that this can be obtained by both natural and legal persons, because with the use of checks and debit cards, it is avoided to carry large sums of money.
  • With the money that we have in the account, we will be able to access different goods or services and acquire them automatically, by means of a card or check.

Bank accounts: Savings Account

It is a financial product that allows the client to save their money safely. The savings account is considered the most used product to save and dispose of money quickly.

The money deposited in the account will generate interest according to the bank's policies and the particular characteristics of each product.

It allows reviewing the details of the rates, to know what is the interest generated by the account at any time. It also allows you to dispose of money in an agile and fast way, since when you open your account, the bank generally delivers a debit card associated with that account, through which it is possible to make withdrawals in the bank's ATM network.

So to summarize the operation of a savings account, you can deposit money in it through consignments through the different channels: offices, ATMs and virtual banking, the money that is in the account generates interest according to the policies of the product and the bank and allows you to withdraw the money from it at any time through the assigned debit card.

Benefits of Savings Accounts

  • In general, the opening sum is not high, so it is easy to have easily accessible products and choose an account that suits our requirements.
  • Ease of controlling financial movements, either from the application, the web portal (from a computer with an Internet connection), or at the available ATM points.
  • Enabled the option to make transfers to accounts of other banks other than ours.
  • Possibility of obtaining profitability for the amount that we have available in our account.

It is not the same as a checking account, there are several differences between these accounts, the most notable being that the checking account works with both a debit card and a checkbook.

Bank accounts: Payroll account

The payroll account, as its name indicates, is a bank account in which the salaried worker receives his salary, and it also applies to those who receive their pension or other type of regular subsidy.

Generally, these types of accounts are exempt from administration and maintenance fees, and in many cases a permanence commitment is not required.

Characteristics of the Payroll Account

  • It can be purchased without the need to go to an office, investing an approximate time of 5 minutes.
  • Easy acquisition of the first debit card completely free of charge, with which we can access our account remotely through the different channels.
  • Carry out financial operations at no cost and regardless of where we are.

 

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