Question

Name several different kinds of bank account. How are they different?

Short answer

Checking, savings, and certificate of deposit are the three types of accounts.

Step-by-step solution

Step 1. Definition of bank of account

a bank account is a customer's financial account that is kept by the bank.

Step 2.Explanation

These are checking account, savings account, and certificate of deposits.

Checking account is for business class. An individual can keep the money. Some banks offer interest rate on accounts as well. The account holder gets a cheque book, and a debit card against the account. It is compulsory to have a checking account in the name of company as all transactions will get recorded.

Savings account is for households and individuals. They get interest rate and can save their money.

Another way of saving money is certificate of deposit. This is where a certain amount of money can be kept in the account for a stated period of time at a higher rate of interest than holding a savings account. Early withdraw is not encouraged. If it occurs there will be a penalty.