Personal banking encompasses a broad range of products and services banks offer to the general public. These are not intended for business use, but rather for individual consumers looking to protect and manage their personal funds and other assets. To determine which personal banking solutions will best suit your needs and lifestyle, you must gain a clear understanding of the different options available. Here are some of the most traditional types of services bank customers use to stay in control of their money. 

4 Common Personal Banking Solutions

1. Checking 

Checking accounts are set up for consumers to deposit and withdraw money as needed. This is the kind of account many people place their earnings into, and it’s where funds come out of when a personal check is written or debit card is used. It’s also possible to arrange for automatic payments to come out for fixed monthly bills, so there’s no need to worry about ever missing a due date.

2. Savings & Money Markets 

If you have money you wish to save for an emergency or specific expense, keeping it in a savings account will allow you to accrue interest on it. Every bank has different interest rates, so do your research before opening an account to ensure you’re maximizing your earnings. A money market account is a type of savings account that requires a high deposit and balance. They typically offer higher interest rates but limit how many withdrawals can be made. 

3. Investments 

Two investment options commonly offered in personal banking are a Certificate of Deposit (CD) and Individual Retirement Account (IRA). CDs are accounts you can save your money in for a certain amount of time at a fixed interest rate. These offer higher interest rates than a basic savings account. IRAs are designed to help consumers put money away for retirement. Contributions can be made to an IRA account tax-free. 

4. Lending 

There are many reasons an individual may need a loan. A bank can provide the funds necessary to buy a car, make home improvements, or consolidate debt through a line of credit account. You can work with the bank to agree upon amounts and interest rates, which are based on your credit score and loan history.

Many consumers choose to utilize multiple personal banking tools to assist them with completing daily tasks and reaching long-term financial goals. For more than eight decades, First State Bank has provided residents throughout the River Valley area of Arkansas with high-quality products and services. Whether you wish to open a new account, apply for a loan, or learn more about investing, their knowledgeable staff will help you find the right solutions to make the most of your finances. Call the bank at (479) 498-2400 to discuss your needs, or visit their website to see a full list of personal banking options.