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How To Manage Bank Accounts BetterThe first step to proper money management is to learn how to manage bank accounts to work in your favor. Saving money is king in the world of money management, and your primary source to save money is in your bank accounts. The first step is to learn the about the different types of bank accounts you need.
Banks change all the time; they merge with bigger banks, change their names and it’s hard to keep up. With all the recent mega-mergers and all the restrictions & conditions all these banks are implementing, the average consumer can get confused about which bank to choose. If you want to make this process painless, you just need to understand what type of accounts you want. If you are out of college, then hopefully you already have a Checking Account. Checking accounts are easy. Instead of paying with cash, you have money ready available by writing a check or using your debit card.
The 3 Main Breeds of Banks:
• Commercial Banks - These are the type of banks most people use. They can be really big mega banks (i.e. JP Morgan Chase) or small community banks. They are allowed to loan money, take deposits and other basic banking services. • Credit Unions - These banks offer many of the same services commercial banks offer, but they generally offer better rates on loans and savings. This is because they are non-profit organizations and they don't have to pay federal taxes. • Thrifts - Commonly known as savings and loans (S&Ls). They generally accept deposits and extend credit, but they have a bad reputation from the '80s when they failed. Due to recent legislative changes, thrifts are good choices again when choosing banks.
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