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Common Types of Investments

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Common Types of Investments There are several ways to invest your hard earned dollars. The key to finding the best type of account you want to invest in is to be educated to the types of investment accounts available and advantages and disadvantages of each. It may take some time to find the right type of account, but, with the right information, the best decision can be made. I used the Regions bank website to investigate four common types of investment accounts: checking accounts, money market accounts, passbook savings accounts, and certificates of deposits. Although rates may differ between banks, I will also use the rates as typical examples of the type of interest that can earned from each of these accounts. With the information I find, I will decide which would be the best choice to invest $1,000. Checking accounts are common accounts that most people have and use daily. While some have monthly fees, most banks offer some type of free checking as long as the account meets certain criteria. Regions offers a checking account that has an $8 monthly fee, which will be waived if the account meets one of the following criteria: direct deposit, 15 electronic transactions per month, or a $1,000 average monthly balance. Some other advantage of this type of account is the convenience of having your funds available immediately, low risk, and you can use online banking. You would either be able to withdraw by going into the bank, or use the free ATM/debit card that is provided with the account. The major disadvantage of this type of account is that you will not earn any interest on your deposited funds. Another common account type that is available is a money market account. This type of account had some of the same advantages of the checking account: low risk, immediate availability of funds with a limit of six transactions per month, online banking,