Checking is a service provided by banks, savings and loans, and credit unions. When you need to store your money safely you need an account.
Checking allows an individual or a business to make bank transactions (such as depositing money or withdrawing funds) from a federally insured bank account.
The specific terms of a given account will depend on the policies of the bank the account is held by, but in general accounts are all the same.
All checking accounts offer the holder of the account personal checks printed by the bank and personalized with the account holder’s details – these checks can be used in place of cash for payment, although these days more and more businesses won’t take personal checks.
The new alternative to checks is the electronic debit or ATM card. The holder of the account can use a card to access their individual account, take out cash withdrawals, make payments, make bank transfers, and even buy stamps and other convenience type items, all depending on what is offered by your bank’s ATMs.
A checking account is basically a way to keep your money safe and have constant access to it.
Special Types of Checking
Some banks offer special forms of checking for customers who have specific needs.
Customers with poor credit, credit issues, or low income such as students or people with little credit history should look for very basic checking accounts (sometimes called “no frills accounts”) which don’t charge fees for certain features. In exchange for fee-free account access, your account will be limited in terms of interest earned and the amount of withdrawals you’re allowed to make.
If a customer is interested in earning a higher interest rate, certain accounts do pay a greater interest rate if a customer keeps a specific minimum balance. In exchange for keeping $2,500 in my checking account each month, my interest rate goes up almost a full point.
There are other kinds of specialty accounts – so called “life line checking accounts” exist. These are basically checking accounts for older citizens or other customers whose monthly income is not from a traditional job. These checking accounts don’t charge fees like monthly service fees for low balances or surcharges for ATM use.
Depending on what kind of customer you are and what kind of account you’re looking for, different types of accounts exist. Contact banks nearby to find out about their special programs..
How to Keep Track of Your Checking Account
Most banks offer a variety of ways for their customers to keep an eye on their checking balance. Not only should you keep your own tally of deposits and withdrawals, but you can use any number of systems offered by your bank to make sure your and their records are correct.
The most common methods of keeping your balance in check is keeping your bank’s printed monthly statements of debits and credits. These paper statements are mailed to you monthly, or available online all the time. ATM machines even offer an option to check an account balance, and many banks have phone-in centers where you can use an “automated teller” for certain financial updates and transactions.
You should closely compare your own list of checks you’ve written with the list of checks that have already been deposited to determine how much money is actually available in your account balance.
As long as you are a responsible account holder and you maintains good records of your transactionIs, you should be able to keep a minimum balance in your account and avoid penalties.
Dentists should hire experts to take care of their accounting and billing
A checking account is just about the safest and easiest way of paying bills and dealing in money. Everything from direct deposit of your payroll check to using PayPal to shop online requires a checking account. Sure, savings accounts are good for adding interest, but a checking account allows you to make everyday transactions like paying rent and bills or purchasing everyday items. You don’t necessarily need accountant services to manage this.