Here are different accounts to know for individual accessibility and convenience.

Checking Accounts

Checking accounts is one of the most convenient facilities for regular consumers. Consumers can easily deposit amounts through checks and deposit slips and withdraw through debit cards or direct paycheck deposits. But it is better for the short term only as there are low-interest rates on deposits reaching an average of .04% only.

Benefits

• The clear purpose of checking accounts is to ensure short-term savings and deposits  to further move them to savings accounts or investments ahead.
• It also gives ease to access amounts for recurring transactions like bills.

Savings Account

Savings accounts are interest-bearing accounts run for long-term profits and accessibilities to the consumers. Banks and financial institutions run these for higher rates of interest. . Being more reliable and safer, it is widely accessed by consumers.

Benefits

• Savings accounts have higher interest rates, defined as a taxable INCOME for consumers.
• These are quickly accessible and an option to consider for short-term cash usage.
• These do not have any limitations on withdrawal and deposits.

Money Market

A money market account is for trading into the market i.e., short-term debt investments. Individuals can invest in mutual funds and money markets by opening in these accounts. Larger communities and traders can manage their trading activities through money markets.

Benefits

• Larger communities can trade quickly for short-term debts and exchange commercial papers.
• Individuals can invest in larger stocks and mutual funds with this account.
• These banks are relied upon for liquidity and the safety of short-term transactions.

Cash Deposits

Cash deposits (CD) are the money you deposit in your relevant bank account. This can be with the medium of cash-slip deposits or cash deposit machines of the bank itself or bank cheques. This is a good saving option for individuals and safer as banks take responsibility for the safety of cash.

Benefits

• Excellent savings option for people.
• Banks take responsibility for the safety of amounts.
• Can be in checking accounts for quick banking and savings account to avail interest rates.

Takeaway

Cash deposits give an easy way to deposit cash and budget management, while checking deposits helps in easy bill payments and banking. These are perfect for short-term deposits. Savings accounts are better for long-term investments because of higher interest rates. Lastly, the money market is for traders and individuals who regularly invest in the money market.

Reference:

Beatty, A., & Liao, S. (2014). Financial accounting in the banking industry: A review of the empirical literature. Journal of Accounting and Economics, 58(2-3), 339-383.

Beatty, Anne, and Scott Liao. “Financial accounting in the banking industry: A review of the empirical literature.” Journal of Accounting and Economics 58.2-3 (2014): 339-383.