5. banking deep guide

Common Banking Products and Services

Checking Accounts

One of the most common consumer banking services, checking accounts allow you to store and manage your money, so you can pay for goods and services directly from your account. It can be tied to direct deposits, ATM or debit cards.

Savings Accounts

A savings account allows you to separate money you want to accumulate from money you want to spend. This service lets you to build up money for some goal while still giving you quick access to the cash in the account if you need it.

Certificates of Deposit

A certificate of deposit — or CD — allows you to put money in an account for a specific amount of time from six months to five years. A CD typically pays a higher interest rate than a standard savings account.

Money Market Accounts

A money market account allows you to earn higher interest rates than traditional savings accounts. However, they may require a minimum deposit and require you to maintain a minimum balance. Money market accounts typically come with FDIC or NCUA insurance protection, debit cards and check writing abilities.


Consumer banks provide several different types of loans. These include personal loans to cover unexpected expenses, auto loans, home equity loans and personal lines of credit.

Debit Cards

Debit cards are connected to your checking account, allowing you to swipe the card at a business and pay for goods or services directly from that account. They may be more convenient than carrying cash, but you may be on the hook for charges to the card if it’s lost or stolen. Check with your bank about its requirements.

Credit Cards

Banks issue credit cards to allow you to make purchases on a line of credit. You borrow money from the bank each time you use the card, with the promise of paying it back. You pay interest on these charges unless you pay your credit card fee in full each month. You may also pay a fee to use the card.

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