4 Essential Financial Accounts that Every Young Adult Needs

As an adult beginning to build your financial corpus, it is important to have the right tools on hand. The essential tools that help ease out your fund management and growth include different banking accounts. These accounts are designed to facilitate your financial path and secure a strong fund balance. After all, the road is long and winding.

Here are 4 accounts that every young adult must have as part of building his/her financial health:

Savings account – As you begin to experience the freedom that adulthood brings, you must also secure the essential cost of living. You may now have to serve the different expenses of housing, rentals, car and fuel, grocery and much more. These things make up as essentials of your lifestyle and you must have them backed up. A savings account must be used to accumulate money for all your unforeseen costs. It acts as an emergency fund that you can turn to in the event of losing your job or if you have simply fallen on hard times. Multiply your monthly essential cost by six and that is how much you should hold in your savings account at a given point in time.

Credit card account – A credit card has now become a requisite financial tool. It helps you start to build a strong credit as you are now earnestly employed. This credit score will greatly affect your financial standing in the years to come. It is reviewed by lenders when you are in need of credit or different kinds of loans. Apart from this factor, credit cards also come with a host of benefits. Opt for reward credits cards that will let you redeem great offers through different spending.

Checking account – A checking account is essential for easing your daily transactions. It essentially acts as a clearinghouse for your incoming and outgoing bills. The account comes with a number of features such as no-fee, debit cards, customer service and more. Look for the different features that you need to make your banking journey smoother.

Fixed deposit account – Fixed deposits let you deposit a sum of money with the bank for a fixed tenure while promising an interest return at the end of the tenure. This account is extremely popular as it carries minimal risk and assured returns. It is advisable to add to your financial portfolio, a fixed deposit account as it can aid in facilitating your long term financial goals.

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Author: Eddy

Eddy is the editorial columnist in Business Fundas, and oversees partner relationships. He posts articles of partners on various topics related to strategy, marketing, supply chain, technology management, social media, e-business, finance, economics and operations management. The articles posted are copyrighted under a Creative Commons unported license 4.0. To contact him, please direct your emails to editor.webposts@gmail.com.