The views expressed in Economy Matters are not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System.
Editor's note: Throughout Economy Matters, "Southeast" refers to the six states that, in whole or in part, make up the Sixth Federal Reserve District: Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee.
Financial Tips from the Atlanta Fed: Banking Basics
The options for having accounts at financial institutions continue to expand as the financial system diversifies and evolves. Starting with banking basics allows individuals to understand the various options available for accounts and financial institutions.
- There are a number of factors to consider in choosing a bank such as the types of services provided, accessibility, and location. Individuals differ in their specific needs, so it is important to find the right financial institution to meet your needs and help keep your money safe and secure.
- When considering various financial accounts, think about the purpose. If it is a transactional account, you may want one that provides easy access to funds. For example, funds can generally be obtained from a checking account more easily and with fewer penalties than a certificate of deposit. However, a certificate of deposit may offer higher interest rates, which may be important for those looking to put funds away and let them grow.
- While the Federal Reserve does provide financial services to banks and governmental entities, individuals cannot maintain accounts with the Federal Reserve.
- As the central bank, the Federal Reserve naturally devotes a great deal of thought to banks and banking. Now, get thinking about banking, past and present, with this quiz.