Be direct and start your response by providing details that can address the interviewer’s question. Bank accounts come in the following varieties:

Checking Account: Although the account functions similarly to a savings account, interest cannot be earned on it. There is no withdrawal limit when you create a checking account with a bank, which is an advantage.

Money Market Account: This account offers the advantages of both checking and savings accounts. The cash can be withdrawn while still earning higher interest. There is no minimum balance required to open such an account.

Saving Account: Such an account allows you to save money while simultaneously earning interest. There is a limit to the number of withdrawals, and to keep the account open, there must be a certain minimum balance.

Certificate of Deposit Account (CD): By opening such an account, you are required to deposit money for a specified time, such as five or seven years, and you will be paid interest on those funds. You cannot withdraw the money until the fixed period has passed; the bank will determine the interest rate.