Checking Account

The great transaction account!

Definition

A checking account is a tool used to transfer funds deposited into accounts to make a cash purchase.

Interest

Checking accounts can either be interest or non-interest. If the account does earn interest, the interest rate is usually the lowest compared to any of the other saving tool's interest.

Accessibility

A checking account is considered the most liquid than any of the other savings tools. This is because it is very easy to convert one's checking into cash. One's account can be easily accessed through a check, an automated teller machine (ATM), a debit card, the telephone, or the Internet.

Features

Some features of checking accounts include....

  • Availability at depository institues
  • Reduce the need to carry large amounts of cash
  • Many different types of checking accounts
  • Many are available for free meaning no minimum balance requirements and no limited check writing

Additional Information

Although many of the checking account have the same requirements, some checking accounts have different requirements such as limited check writing, minimum balance, and charge transaction fees.