You may already have a checking account and/or a savings account. With most jobs paying their employees through direct deposit to their bank accounts it is difficult to not have a bank account. A checking account works as a kind of all purpose account where you can make regular deposits and withdrawals.
You may wish to invest in more than one banking product if you feel the time has come for you to start investing. It is always best to take it slow and take it one step at a time. CD combo accounts take into account a certificate of deposit as well as a regular account. Once your CD has matured you may decide to take the money and place it into your account. From here you can use the money to pay bills or for whatever purpose you require.
A good account should be simple to use and cheap to have. If you have a great deal of money to invest (such as in the high thousands range) then you may want to consider a high yield account or a reward checking account. While in most cases you cannot find a CD checking account these high-yield or reward accounts pay higher interest rates than any type of certificate of deposit would. They also pay better rates than savings account or money market accounts.
The average person needs a checking account to pay their bills from and withdraw money from to make regular everyday purchases such as groceries or gas. When shopping for a checking account you need to be smart. Stay away from banks that want to charge you a big list of fees. For example, avoid signing up for checking accounts that impose monthly maintenance fees, starter check fees, per-check fees or check image fees.
When it comes to CD checking or a regular account in general do your research before you commit to anything. Steer clear of a bank account that has a minimum balance requirement. What you need to find is a free checking account. This means that it does not matter whether you have a balance of $1, $10, $100 or $1,000 you will not be charged monthly fees based on how much money is in your account.
Be aware that a CD will earn you interest but a regular account will earn you next to none. Most traditional checking accounts pay interest in the area of one percent. In many cases it is even less. It is most likely closer to percent or percent. At an interest rate of percent if you have a balance of $1,000 in your account you will earn 8 cents a month if the interest is compounded on a daily basis. Having a CD combo account is a good idea if you have enough money to put into both.
Having a CD Checking won't always have High CD Rates.
For more information, please visit: High Yield Money Market