This depends on how you plan to use the account. If you want to grow your money and do not need to access it readily, put it in a CD. If you need ready access to your money, a savings account could be a good option. If your primary concern is paying bills, a checking account would be easiest. Remember, if you only write 2-3 checks a month, an MMDA could suit your needs very well. They have a higher rate of return, but also have a higher minimum balance requirement. Checking accounts can be very efficient. They simplify your recordkeeping — if you cancel a check, you have a receipt at tax time, and the check register is an easy way of tracking monthly expenses. Bank institutions have varying fees and features with each of their accounts, so it is important to find out what these are before making a final decision on which bank and which type of account to choose. A good way to get the most out of a checking account is to inquire into what the minimum balance is and make sure you maintain that amount. Another way to maximize efficiency is to get a checking account that pays interest, or go with a bank that lets you distribute funds into both checking and savings accounts that, combined, reach the minimum balance.