In school, we are rarely ever taught the basic principles of personal finance and banking that can be so important to the rest of our financial lives. We either learn it on our own or never learn it at all and mess up our credit. If you’re new to banking, this article is a great place to learn about the basic investment tools you’ll need to succeed.

Checking Accounts

Checking accounts are transactional accounts where you can deposit your money and withdraw money to pay for expenses. The accounts are FDIC-insured, meaning you will never lose the money you have deposited. In general, checking accounts make it easy for you to write checks and use your debit card to directly fund a purchase without using cash.

Savings Accounts

Savings accounts are similar to checking accounts, except that your deposits generally earn more in interest, especially if you have a high-yield savings account. In general, you want to have a savings account that you don’t ever touch so that you can build an emergency fund or nest egg. Only use money from your checking account for purchases. You can even have part of your checking account automatically transferred to your savings account each month to help you save.

Money Market Accounts

A money market is a term used to describe a virtual exchange where banks and investors lend and borrow money. By opening a money market account (MMA), your deposit is being invested in short term investment vehicles that provide a decent return. Think of money market accounts as a high-yield savings account that invests in a number of products like CDs and treasury bills. MMAs are also protected by the federal government.

CD (Certificate of Deposit) Accounts

A certificate of deposit account, or CD account, is an investment wherein your money is deposited for a specific period of time (usually six months or one year) for a guaranteed interest rate of return. CDs are a great way and safe way to invest as they are FDIC insured. You want to be careful not to withdraw your deposit early or you will be charged an interest penalty, so only sign up for a term you can manage. These are all banking tools that will help you make the most of your money and save for the long term.