Did you know there are many types of bank accounts? Many people assume that checking and savings are the only valuable bank accounts available, but that is not always the case. For many people, checking and savings is all that is needed, but many other people need a more robust variety of financial tools. Let's look at some of the more common types of bank accounts.

The most common bank accounts are the checking accounts. A checking account uses paper checks and/or electronic funds transfers as its primary means of business. By opening a checking account you receive paper checks that can be used for a variety of purposes. Many checking accounts are free, but some may charge a small fee each month.

It is always a good idea to learn about any fees in advance of opening any type of bank accounts and this includes checking. Some institutions will also allow you the use of their ATM with your account. Other institutions may also allow you the use of debit cards which can be very handy. As with checking fees, make sure you understand if there are added charges for using the ATM or for using debit cards.

The next most popular bank accounts are the savings accounts that virtually all banks offer. With most savings accounts you can make deposits and withdrawals, the same as you might do with a checking account. Keep in mind, however, that savings accounts are normally not as flexible as checking accounts.

In some cases, you are only allowed to make a set number of withdrawals per month from your savings. It should also be understood that many savings accounts do not include checks which means you must visit the bank to get your money. The use of ATM's is usually allowed for savings bank accounts for both deposits and withdrawals.

Money market accounts are yet another tool that many people find useful. For the most part, a money market account pays higher interest on the funds that you deposit than a simple savings account, but there are also more restrictions on how and when you can get your funds when you need them. These bank accounts will normally have a minimum balance that must be maintained in order for you to get the higher interest rate. Also, you may find that these bank accounts have a very restrictive limit on the amount of withdrawals you can make each month.

Another financial investment tool that many people find beneficial is the certificate of deposit (CD) that many financial institutions offer. These particular bank accounts should be treated as investment vehicles rather than money-moving accounts.

All CD programs require a certain amount of funds be deposited into the account and you must also agree to leave the money in the account for a predetermined length of time. In exchange, the bank or credit union agrees to pays a higher interest rate on the money you have placed into the account.

In the event you withdraw the funds early you will most likely be charged a penalty fee. In some cases, you may be allowed to withdraw the interest that has accrued without having to pay the penalty fee, but this varies from institution to institution.