Bank Account Options

Interactive Video

[A smiling couple filling out an application at a bank.]

Narrator: Have you ever had that excited feeling when you reach in a coat or pants pocket and discover a forgotten $20 bill? Even though it’s your money, it feels like you just won a prize!

[A woman surprised and excited while pointing to the $20 bill she is holding. A flashing star contains the words “Big Winner”.]

Well, that feeling can also happen when your money has compound interest at work.

[An open vault with a pile of money inside that grows into an even larger pile of money.]

Some people might keep cash at home because they are very cautious. Everyone wants reassurance that their money is safe and won’t disappear.  But keeping money at home isn’t the best storage solution.

[A person sliding a stack of money under the mattress. A piggy bank grows wings and flies away.]

Bank and credit unions afford you three key things: insurance that your money is protected and guaranteed, knowledge that your money is always available to you and, the opportunity to grow your money.

[A large bank and three icons: a safe, a hand withdrawing money from an ATM, and an arrow pointing up with a dollar sign on it.]

There are thousands of banks and credit unions with different account options that you can choose from to suit your personal needs! All you have to do is pick one.

[Animations of three hands performing a different banking transaction at each of three banks: depositing a check, depositing savings, and withdrawing money. A check mark appears on the third bank.]

Choosing a bank account isn’t all that different from other things you choose in life: where you live, the transportation you use, or the job you work. These choices are based on your goals, your interests, and your personal preferences. 

[A man completing a transaction with a bank attendant who is smiling and counting several cash bills.]

Let’s help you pinpoint the bank account that might best suit your current needs. Answer a few questions to identify what’s important to you and what your needs are. Think carefully about your choices; if you select everything, you won’t be able to narrow down your bank account recommendations.

[A smiling man is interested in growing his money and building an emergency fund. A check mark appears on the emergency fund.]

Select all the financial goals that are important to you right now.

[Onscreen Text]: 

Option 1: save for education

Option 2: build an emergency fund

Option 3: save for retirement

Option 4: grow money

Option 5: save for housing

Option 6: save for a big event or purchase

Option 7: reduce or pay off debt

Option 8: Pay bills easily

Next, what three banking features are the most important to you?

[Onscreen Text]: 

Option 1: low minimum balance

Option 2: easy access to money

Option 3: online banking

Option 4: no transaction limits

Option 5: higher interest rates

Option 6: limited fees

Option 7: overdraft protection

Option 8: direct deposit

Finally, select one personal preference that is the most important to you about banking.

[Onscreen Text]: 

Option 1: convenience

Option 2: safety

Option 3: affordability

Great! Now take a look at some banking options that might match your needs right now. Keep in mind that these are generalizations to guide you. Banks and credit unions have their own account features and associated fees, so you need to do some comparison shopping.

[Onscreen Text]:

Account 1: traditional savings

• great for saving money
• keep money secure and protected
• easy to open
• FDIC insured
• access to money at any time
• online banking
• ATMs/debit card
• direct deposit
• lower interest rate
• little or no minimum balance requirement
• possible fees and limitations

Account 2: money market/high-yield savings account

• great for earning interest
• grows money with compound interest
• higher interest rates
• FDIC insured
• access to money
• online banking
• direct deposit
• ATMs/debit card
• higher minimum balance requirement
• possible withdrawal fees

Account 3: certificate of deposit (CD)

• great for earning interest
• keeps money safe
• fixed, higher interest rates
• preset term to earn interest (e.g., 6 months, 1 year, 5 years)
• FDIC insured
• low risk
• money not easily liquid
• early withdrawal penalty

Account 4: traditional checking account

• great for everyday purchases, paying bills and direct deposit
• convenient
• FDIC insured
• low minimum balance requirement
• may offer overdraft protection
• access to money at any time
• online or mobile banking
• auto bill pay
• direct deposit
• ATMs/debit cards
• low or no interest rate
• possible fees and limitations

Account 5: student checking account

• great for first accounts
• affordable and easy to manage
• easy to open
• FDIC insured
• low or no fees
• generally no minimum balance requirement
• may offer overdraft protection
• access to money at any time
• online or mobile banking/ auto bill pay
• ATMs/debit cards
• direct deposit
• low or no interest rate
• possible special perks or discounts

Account 6: premium/rewards checking account

• great for higher interest rates, rewards, and cash back benefits
• money growth
• high-yield interest rates
• FDIC insured
• higher balance minimum maintained
• access to money at any time
• online or mobile banking
• auto bill pay
• direct deposit
• ATMs/debit cards/checks
• cash back rewards on debit purchases

Remember that financial goals and preferences can change over time, and that’s OK. 

[A bullseye with a corvette in the center is replaced by a bullseye with a minivan in the center. An arrow flies in and hits the bullseye in the center.]

Bank and credit union staff are there to work with you to find the best fit for you and help you adapt as your personal needs change. 

[A smiling couple filling out an application at a bank.]

But, as always, before you open an account, make sure you always read the fine print to understand any limitations or fees associated with the account. 

[An animation of a magnifying glass hovering over a form titled, “Terms and Conditions.” The magnifying glass reveals a $199 annual fee.]