Bank Accounts Every American Should Have

The right number of bank accounts that a person should have will vary based on what their needs are. However, these are certain bank accounts that every single person should have. 

No-Fee Checking Account

Your checking account is what helps you pay for day-to-day transactions. Ideally, you shouldn’t be paying a fee to the bank to maintain your checking account. If your bank charges you a monthly fee, it may be best to open an account with a different bank – online banks and credit unions are good choices in this regard. 

High-Interest Savings Account

You should, ideally, have at least two savings accounts – one to maintain your emergency fund and one to save up money for your long-term goals like buying a car, making a down payment for a home, etc. Since you will be adding cash to your savings accounts regularly, make sure to open an account that offers a high rate of interest. There are many banks that offer interest rates as high as 1.70%, so make sure to compare the rates offered by different banks. 

Investment Account

In addition to having an account for your day-to-day expenses and your emergency fund and financial goals, you’ll also need to have an investment account that’ll help you save up for the future. Unlike your savings account which earns a moderate rate of interest, your investment account should earn the highest returns possible. Although you may be opening yourself up to some level of risk and market volatility with an investment account, keep in mind that this is the best way to grow your money. If you are a novice investor, it would be best to get a Robo-advisor or open a low-fee mutual fund.

Credit Card Account

While this is not really a type of bank account, everyone should have a rewards credit card that offers you cashback, points, or miles when you charge expenses to the card. It’s best if you pick a card that has a low or no fee. But, don’t brush aside cards with higher fees since they may be offering excellent rewards. When picking a rewards card, make sure to check if there are any limitations or caps on the rewards earning potential.