What type of checking account do i have

A checking account is used for day-to-day cash deposits and withdrawals. With a checking account, you can access your money through in-person withdrawals, a debit card, bank wire transfers or by writing checks. There are different types of checking accounts, including a student checking account. 

Most traditional checking accounts have a monthly service fee. There are typically ways to waive the monthly service fee on a checking account if you meet certain requirements. There may be other fees for things like out-of-network ATMs, checks and overdraft charges.  

The pros and cons of checking accounts

When deciding whether you want to open a checking account, weigh out the pros and cons first.  

Some pros include: 

• Not all accounts require a minimum balance to open or maintain the account. Most traditional checking accounts have a monthly service fee. There are typically ways to waive the monthly service fee on a checking account if you meet certain requirements.
• Some accounts allow you to use any ATM convenient to you with little to no fees.
• Some checking accounts offer perks and benefits, like checks.
• With checking accounts, you can set up direct deposit with your employer. You don’t have to wait for a paper check and instead can have your paycheck automatically deposited into your account each pay period.

Some cons include:

• Some banks require you to keep a minimum balance in your checking account at all times.
• While there can be ways to waive them, some checking accounts charge a monthly service fee.

Common types of checking accounts

Banks and credit unions oftentimes offer multiple types of checking accounts to choose from. Below you'll find the most common types of checking accounts. Not all checking accounts are the same, so do your research before picking one. 

Traditional checking account

This is a type of checking account in which you use checks and a debit or ATM card to withdraw money or make transactions, and they sometimes offer online bill pay services. You can open a traditional checking account at most banks and credit unions.  

Premium checking account

Premium checking accounts earn or offer you perks that you’d normally have to pay for with a traditional checking account. Examples could include no-fee personal checks, no-fee official checks, no-fee money orders or waived out-of-network ATM fees. Some banks offer additional perks, such as lower mortgage interest rates. 

Student checking accounts

Banks create checking accounts tailored specifically for students. Students don’t always have a lot of income or savings, so a student checking account can come in handy. Student checking accounts offer basic check-writing and debit card services, with a few extra perks.

Now that you know some of the checking account options available, you can move forward and confidently choose the right type of account for your lifestyle.  

When you go to a bank to open a new account, you will have a variety of account types and features to choose from. Should you choose the basic checking option or an account that earns interest? Do you want the convenience of a bundled checking and savings account or the higher returns of a money market account?

To make these decisions, it’s helpful to first understand the differences between the most common bank account types. Here are some definitions to help you navigate your banking needs:

• Checking account: A checking account offers easy access to your money for your daily transactional needs and helps keep your cash secure. Customers can typically use a debit card or checks to make purchases or pay bills. Accounts may have different options to help avoid the monthly service fee. To determine the most economical choice, compare the benefits of different checking accounts with the services you actually need.
• Savings account: A savings account allows you to accumulate interest on funds you've saved for future needs. Interest rates can be compounded on a daily, weekly, monthly, or annual basis. Savings accounts vary by monthly service fees, interest rates, and account features. Understanding the account’s terms and benefits will allow for a more informed decision on the account best suited for your needs.
• Certificate of Deposit (CD): Certificates of deposit or CD, allow you to save your money at a set interest rate for a pre-set period of time - which can range from a few months to several years. CDs often have higher interest rates than traditional savings accounts because the money you deposit is tied up for the terms of the CD. Be sure you will not need the funds before the end of the CD term, as early withdrawals may have financial penalties. 
• Money market account: Money market accounts are similar to savings accounts, but they typically require you to maintain a higher balance to avoid a monthly service fee. Both savings and money market accounts have variable rates. Money market accounts can have tiered interest rates, providing more favorable rates based on higher balances. Some money market accounts also allow you to write checks against your funds, but may be on a more limited basis.
• Individual Retirement Accounts (IRAs): IRAs, or Individual Retirement Accounts, allow you to save independently for your retirement. These plans are useful if your employer doesn’t offer a 401(k) or other qualified employer sponsored retirement plan (QRP), including 403(b) and governmental 457(b), or you want to save more than your employer-sponsored plan allows. These accounts come in two types: the Traditional IRA and Roth IRA. The Roth IRA offers tax-free growth potential. Investment earnings are distributed tax-free in retirement, if the account was funded for more than five years and you are at least age 59½, or as a result of your death, disability, or using the first-time homebuyer exception. Traditional IRAs offers tax-deferred growth potential. You pay no taxes on any investment earnings until you withdraw or “distribute” the money from your account, presumably in retirement. Both types of IRAs offer investment flexibility, tax advantages, and the same contribution limits. You may want to discuss which type is best for you with your tax advisor before choosing your account.

Once you understand the types of accounts most banks offer, you can begin to determine which option might be right for you.

  Tip  

Interest rates can be compounded on a daily, weekly, monthly, or annual basis.

Empower yourself with financial knowledge

We’re committed to helping with your financial success. Here you’ll find a wide range of helpful information, interactive tools, practical strategies, and more — all designed to help you increase your financial literacy and reach your financial goals.

My Financial Guide

Income tax will apply to Traditional IRA distributions that you have to include in gross income. Qualified Roth IRA distributions are not included in gross income. Roth IRA distributions are generally considered “qualified” provided a Roth IRA has been open for more than five years and the owner has reached age 59½ or meets other requirements. Both Traditional and Roth IRA distributions may be subject to an IRS 10% additional tax for early or pre-59 ½ distributions.

Investment and Insurance Products are:

• Not Insured by the FDIC or Any Federal Government Agency
• Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any Bank Affiliate
• Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

Investment products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is a trade name used by Wells Fargo Clearing Services, LLC (WFCS) and Wells Fargo Advisors Financial Network, LLC, Members SIPC, separate registered broker-dealers and non-bank affiliates of Wells Fargo & Company.

How do I know my account type?

What is a regular checking account?

What are 3 different checking accounts?

What are the 4 account types?