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What Are the Different Types of Commercial Bank Accounts?

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  • Written By: Esther Ejim
  • Edited By: Kaci Lane Hindman
  • Last Modified Date: 03 September 2016
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There are several types of commercial bank accounts, some of which serve related purposes but have different conditions attached to them. An example of such an account is the well-known savings account, which serves the same purpose that is suggested by its name. The checking account is another familiar inclusion in commercial bank accounts, which is fundamentally different from a savings account. Other types of commercial bank accounts include money market accounts and certificates of deposit.

When listing the types of commercial banks accounts, the savings account is one of the account types that comes to mind. This type of account is usually created for bank customers who wish to save some money and also prevent their money from being idle. Idle money is a term that is used to describe any type of money that does nothing but stay wherever it has been placed, to all intents and purposes such money does not increase in value. By placing their money in a savings account, individuals can at least ensure that the money will earn some form of interest, with the exact rate determined by the bank in question and other monetary and fiscal policies. Some banks may also have policies that make it mandatory for their customers to maintain a certain limit in their savings accounts at the risk of incurring some kind of monetary penalty.

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Checking accounts are other types of commercial bank accounts that allow the account holders to have a more immediate access to their money. This is due to the fact that checking accounts are usually reserved for expenses, including acts the issuing of checks. The basic checking accounts do not offer any interests for deposits, while the interest-bearing checking accounts offer depositors some form of interest, with the exact rate depending on a number of factors. A common checking account often has a maximum number of checks that the owners of such accounts can issue. On the other hand, interest-bearing checking accounts do not have such restrictions.

Money market deposits are a different category of commercial bank accounts that convert the balance of the depositor into items like treasury bills and commercial paper. Such accounts do not start to earn interest until a certain balance has been reached. Certificates of deposits refer to the types of commercial bank accounts that involve some sort of agreement or arrangement with the bank to leave the money in an account for an agreed length of time. The longer the money stays put, the higher the interest will be.

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