View random article

What Is a Checking Account?

One of the services offered by financial institutions – this includes banks, credit unions, among others – is a checking account. The service gives clients, either individual or corporate, to deposit and withdraw money from an account with federal protection. A checking account will have different terms depending on the bank, but the general service allows clients to use personal checks in lieu of cash to pay for services and debts. Checking accounts nowadays also offer clients the opportunity to use debit cards or ATM cards to access individual accounts or to make withdrawals.

Almost all banks offer a checking account service because it is one of the most basic services a financial institution can offer. There may be different requirements to open a checking account. There are banks that will ask for an initial deposit before an account can be opened. Of course, proof of identification is always one of the requirements when opening a checking account. There are checking accounts that are open to students or low-income clients. These accounts do not charge a fee for issuing personal checks. Others give clients an incentive in the form of interest payments if they have a high minimum monthly balance.

Whatever the types of checking account, handling it will always be the same. The bank will give the account holder a supply of checks that contain all of the necessary routing and mailing information. A properly filled out check is as good as cash. The account holder should conscientiously check and balance the deposits and withdrawals to avoid overextending their account.

Featured in Finance