A checking account is a specific type of bank account provided by financial institutions which allows individuals and businesses to deposit money and withdraw funds from a legally protected account. Most banks offer checking account services to their customers; however the terms of each account will differ from one bank or financial institution to another.
Features of a checking account
A checking account is a transactional deposit account that is held at a financial institution, whether that is a bank, a credit union, a savings and loans company and so on. Such an account enables deposits and withdrawals to be made using a number of methods, including using personal checks to pay off debts, in place of cash.
In addition to the above, a checking account holder will be offered a debit card to make cash withdrawals, and can use a checking account to set up automatic payment of routine monthly expenses with a one-time setup.
Many individuals and businesses choose to set up a checking account because it offers a highly liquid environment for their money to be held in. Some banks and financial institutions offer such a service on a no-fee basis, whilst others have a minimal fee in place.
To contrast with a standard savings account, a checking account allows numerous withdrawals and unlimited deposits to take place, whereas a standard savings account may have limitations on both. This provides users with greater flexibility, and is therefore advantageous for an array of people, including students, business holders and companies.
Checking accounts can include business accounts, student accounts and joint accounts, along with other types. They are easy to set up and offer fast and convenient access to money.