Do you know the types of bank accounts that exist? What are their differences? Below is all the information you need about the different types of bank accounts available to you.
What is a Bank Account?
The bank account is a financial product by which the account holders can manage their money through the different features offered by the financial institution.
You can deposit your funds through a bank account, complete transfers, enter and review payment of receipts, withdraw money through an Automated Teller Machine (ATM), submit payments by credit card, and more. It is essential to remember that all transactions made regarding income and outflow of funds will be recorded in the bank account.
Bank accounts are considered an essential financial product from which by-products or supplementary products like loans or debit cards can be generated.
Checking Account
This is the most common type of bank account, allows you access to your money whenever you want, and provides money management such as transfers, income, and payments.
Unlike other types of accounts, this is not aimed at saving but is designed to manage money daily. For this reason, it does not offer any return for the money that is saved in it.
A checking account is typically subject to maintenance fees or operational charges. It can be canceled anytime without being penalized or notifying the bank in advance.
Savings Account
A savings account is a financial product that allows clients to save their money safely. The savings account is the most used product to save and dispose of money quickly. The funds deposited in the account will generate interest according to the bank’s policies and the characteristics of each product.
A savings account allows you to review the details of the rates and know what interest is generated by the account at any time. It also lets you have the money quickly and easily through the bank’s debit card when the account is opened. This card also makes it possible to make withdrawals from any ATM part of the bank’s network.
To summarize the operation of a savings account, you can deposit money using different channels: offices, ATMs, and virtual banking. The money that is held in the account generates interest according to the policies of the product, and the bank allows you to withdraw money from it at any time through the assigned debit card.
Payroll Account
As the name implies, the payroll account is a bank account in which the salaried worker receives his salary. It also applies to those who receive their pension or other types of regular subsidy.
Generally, these types of accounts are exempt from administration and maintenance fees, and in many cases, a commitment is not required.
Set Up Direct Deposit
To set up the direct deposit of your paycheck, you must have a copy of your worker’s signup form. The US Bank Direct Deposit Authorization Form (PDF) is available online, or you can download this PDF as an alternative to the hard copy.
When you complete your authorization form, you will add your account type of US bank and include a check or savings account. Also, you will provide your account number, routing number, and other necessary or required information. Once the form is complete, you will submit your direct deposit form to your employer. This eliminates the need for payroll checks to be printed and signed by your employer, safely and securely allowing your income to be directly deposited into your desired account.
Completing an Authorization Form
If you are going to submit or complete your direct deposit authorization form, you must remember the following:
- Read the whole form thoroughly and review checklist items with complete accuracy.
- Save your information digitally or keep the photocopy of the form before giving it to your employer as proof and for safety purposes.
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