A personal account is a relationship between a bank and an individual. As opposed to a business account or a commercial account, the owner of the account is a single person (or several individuals for joint personal accounts). More so, the purpose of the account is for personal use and is not meant to be associated with profit-making entity.
In most cases, a personal account is easier to create. There are fewer requirements as opposed to a business account. In addition to this, the opening balance and maintaining balance requirements are lower. On the other hand, personal accounts usually have lower interest rates applied as well.
There are many different kinds of personal accounts. The most common types of personal accounts would be savings accounts and checking accounts. Checking accounts are also called current accounts. When one has a personal checking account, he is issued checks, which he can use for payments. One big advantage of personal checking accounts is that the account holder is usually not charged for making deposits and issuing checks, as is often the case with business checking accounts. People with personal savings accounts, on the other hand, are not issued checks. They can still deposit and withdraw money via the ATM or a passbook. Often, personal savings accounts are left untouched unless necessary, with the goal of earning a little bit of interest over the years.
Today, personal savings account holders are often offered the option to invest their money in other vehicles. Banks might contact these clients in order to inform them of other opportunities to earn more on the money in the savings account.