Checking, savings, money market, CD: which one do you actually need?
Which Bank Account Is Right for Me? (Quiz)
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Answer a few quick questions about how you use money and this quiz shows the kind of account that fits, what to watch out for and how much your savings could earn compared with the national average. It suggests account types, not specific banks, and nothing you enter is saved or sent.
The main types of bank accounts
- Checking account: for everyday money. It comes with a debit card, bill pay and direct deposit, but usually pays little or no interest.
- High-yield savings account: for an emergency fund or money you may need soon. Online banks often pay many times the national average, and you can withdraw any time.
- Money market account: savings that may include checks or a debit card. It often needs a higher balance for the best rate.
- Certificate of deposit (CD): a fixed rate for a set term. You usually pay a penalty if you take money out early.
- No-penalty CD: a fixed rate with free early withdrawal, usually after the first week.
- Second-chance or Bank On certified checking: for people turned down elsewhere or new to banking, with low fees and no overdraft fees.
Why most people need two accounts
A free checking account handles bills and your debit card. A separate high-yield savings account keeps your emergency fund out of sight and earns far more. Many people keep them at different banks: checking where it’s convenient, savings where the rate is best. Transfers between banks are free and usually take 1 to 3 business days.
What to check before you open any account
- Insurance: the bank should be FDIC-insured or the credit union NCUA-insured, up to $250,000 per depositor, per institution, per ownership category.
- Fees: monthly fees, ATM fees, overdraft and NSF fees, and how to waive them.
- Rate: the APY, whether it’s variable and any balance needed to earn it.
- Access: ATMs, branches, mobile check deposit and how fast transfers arrive.
Frequently asked questions
Should my checking and savings be at the same bank?
They don’t have to be. Same-bank transfers are instant, which helps if you often move money. But big banks often pay very little on savings, so many people keep checking at a bank with branches or a good app and savings at an online bank with a higher rate.
Can I open a bank account if I was denied before?
Usually, yes. Banks often check ChexSystems, a reporting agency for past bank account problems. You can request your free ChexSystems report and dispute errors. Second-chance accounts and Bank On certified accounts are designed for people starting over. Under the Bank On National Account Standards, certified accounts should deny new customers only for past fraud.
Is a money market account the same as a money market fund?
No. A money market account is a bank deposit account covered by FDIC or NCUA insurance. A money market fund is an investment sold by brokerages; it isn’t insured and its value can change, though it aims to stay at $1 a share.
How much should I keep in checking versus savings?
A common approach is to keep about one month of expenses plus a small cushion in checking, so you avoid overdrafts, and move the rest to savings. Build an emergency fund of 3 to 6 months of essential expenses in a high-yield savings account before locking money in CDs.
Sources: FDIC national deposit rates and deposit insurance rules; NCUA share insurance; Bank On National Account Standards (2025–2026) from the Cities for Financial Empowerment Fund; Regulation E overdraft opt-in rules. This quiz is for education and doesn’t recommend a specific bank. Confirm fees and rates on each bank’s own website.
Related: Savings & CD Rate Tracker, Best Free Checking Accounts, High-Yield Savings Accounts, How We Rate Banks.