1.Checking: everyday spending, bill paying.
2. Money market: high interest, quick access.
3.CD: fixed interest, fixed term.
4. Savings: flexible saving, low interest.
Matching the types of accounts with the services they offer
Type of account - Servic
1. Checking account - Designed to be daily money management tools
2. Money market account - Interest is calculated at the end of a fixed time period
3. CDs - Your money must remain in the account for a fixed period of time
4. Regular savings account - Interest is paid monthly
Step-by-step explanation
Checking account: A checking account is a type of deposit account that is designed for everyday spending and bill paying. It typically comes with a debit card that you can use to make purchases in person or online. Checking accounts also often offer features like online bill pay, mobile check deposit, and ATM access.
Money market account: A money market account is a type of savings account that offers a higher interest rate than a traditional savings account. It is a good option for people who want to earn interest on their money but also need to be able to access it quickly. Money market accounts typically have a minimum balance requirement and may limit the number of withdrawals you can make each month.
CDs: A CD, or certificate of deposit, is a type of savings account that offers a fixed interest rate for a fixed period of time. CDs are a good option for people who want to earn a guaranteed return on their money and don't need to access it immediately. The longer the term of the CD, the higher the interest rate you will earn.
Regular savings account: A regular savings account is a type of deposit account that offers a lower interest rate than a money market account or CD. However, savings accounts typically do not have any minimum balance requirements or restrictions on withdrawals. This makes them a good option for people who need a flexible way to save money.