A deposit account is simply an account where you can safely store money.In this deposit account guide, we’ll look at various forms of deposit accounts, how to use them, and how they can help you reach your financial goals.First, here’s a glossary of terms associated with deposit accounts:Annual Percentage Yield (APY): The effective annual rate of return considering the effect of compounding interest.Automated Teller Machine (ATM): A machine that allows bank or credit union customers to perform financial transactions, such as withdrawals and deposits, without needing a human teller.Certificate Account: A savings certificate with a fixed maturity date and specified fixed interest rate. They are called Certificates at credit unions and Certificates of Deposit (CDs) at banks.Checking Account: A deposit account designed for frequent transactions, such as deposits, withdrawals, and writing checks.Compound Interest: Interest calculated on the initial principal, which also includes all the acc...
