What is a Checking Account
Checking account is primarily a bank account that enables easy access of funds. One can make most of the financial transactions with the help of a checking bank account. One should make use of this bank account in case of paying bills as well. It is mandatory for every individual to learn about the ins and outs of a checking bank account. Checking accounts primarily are offered by banks for the sole purpose of storing one’s money until required. Every individual who requires to plan and store money on a regular basis should make use of a checking account. Checking bank account is different from a savings account where one primarily saves money for the sole purpose of collecting interest.
Benefits and Considerations:
The prime benefits that are associated with such a type of bank account differ from one bank to the other. A few banks offer debit cards for opening a bank account while the others charge a nominal fee as well. For first time users it is always advisable to read all the fine prints before contemplating to open a bank account. The different aspects that need to be determined appropriately are enlisted below:
- Is it necessary to maintain a minimum balance
- Fees associated with the ATM
- Deposit needed upfront
- Monthly Fee for Holding the Account
Determine The Most Appropriate Checking Account
It is necessary to estimate the most appropriate type of checking account needed. The primary reason as to why it is necessary to determine the exact type of checking account needed is that the financial tools and needs vary from one individual to the other and from one bank to the other as well. One type of checking account is not perfect for every individual. This basic fact is well realized by the bank authorities and hence offers the customers with a variety of options to choose from.
Different Types of Checking Accounts
Banks offer different types of checking accounts for suiting multiple purposes. Some of the checking accounts are enlisted below:
- Free Checking Account
- Internet Checking Account
- Checking Accounts Loan
- Checking Savings Account
- Mortgage Checking Account
- Opening Checking Account
- Open Checking Account
Students and low-income applicants should always opt for no-frills checking account, as it does not charge any fee. The encouraging aspect with the no-frill checking accounts is that they do no charge fees for performing personal checks. Other applicants can benefit from checking accounts that maintain a high minimum balance every month. Some states make it mandatory to make available a ‘lifeline’ checking account facility for providing benefit to senior citizens. The ‘lifeline’ checking account facility is also deemed appropriate for the low-income groups as well. It needs to be bone in mind that the owners of the checking account are themselves responsible for checking the availability of funds.