Are you a recent high school graduate who has begun working and earning money? Or someone who is still in high school and is thinking about their financial future? Or someone who is just getting started with money and banks? If you’re new to money and banks, you’ll need these three basic accounts to get started, regardless of which one you are or where you live.
1. Checking Account
If you’re new to money, you’ll need a checking account. Your paycheck will be put into a checking account. In addition, your bank account will be used to pay your bills. A variety of checking accounts are available from a number of banks. Here’s a list of the best checking accounts.
2. High Yield Saving Account
Traditional savings accounts do not offer you as much interest as high-yield savings accounts do. High-yield savings accounts work in the same way as ordinary savings accounts. Except that you will earn substantially more interest on the money you deposit in such an account. Be advised that there could be fees associated with opening a high-yield savings account. Here’s a list of the best high-yield savings accounts.
3. Individual Retirement Account (IRA):
Individual Retirement Accounts (IRAs) are accounts that allow individuals to save money for retirement in the United States. There are three types of IRAs available. To read more about the many types of IRAs, go here. Money put in an IRA is invested, and you may receive a decent return depending on whatever sort of IRA you choose. However, depending on market volatility, you could lose money invested in an IRA account. Money saved in an IRA, on the other hand, is tax-free if the exit requirements are met. Finally, IRAs can be opened through a variety of banks and online financial applications like M1 Finance.
You can achieve financial and retirement goals by using these three basic bank accounts. Click here to learn more about supplementary financial planning.
