What is a Checking Account?

 

I heard that someone opened a checking account. But what is a checking account?

A checking account is an account at a bank where you can make day to day transactions.

But do I make any money, like interest, from a checking account?

No, usually checking accounts don’t pay any interest. But some checking accounts pay a small interest.

But then what’s the use of having a checking account anyway if you don’t get any interest?

First of all, the money is safe and it is accessible, which means you can take it out or withdraw it at any time by writing checks.

Are there any other benefits?

Yes, there are other benefits. Like if you open a checking account, you can get a debit card for making store payments and taking money out of an ATM. You can also make online bill payments.

Can I deposit money from my piggy bank into my checking account?

Yes, you can do that. It’ll be a lot safer there, and that would be a really good idea!

How many checking accounts can I have? Like, is there a maximum?

No, you can have any number you want.

But can I move my money from one checking account to another checking account?

Yes, you can transfer money from one checking account to another checking account by writing a check. Or, you can do an online transfer.

Who needs to have a checking account?

Well, everyone does!

How do I open a checking account?

It’s very easy to open a checking account. You can do it by visiting a bank’s branch or online. You just need your social security number and a photo ID, like your driver’s license.

Are there any fees that come with a checking account?

Yes, many banks do have $10-$15 monthly fee. But that fee could be waived if a minimum balance is maintained in the checking account. It depends on bank, but usually the minimum balance is $1000-$2000.

The fee could also be waived if you make a monthly direct deposit that is set up for that account.

Whoa! That’s a lot of facts about a checking account!

Yes, it is! And one more thing Sooper Coopre. Finance is your friend!

Podcast: What is a Checking Account

11 Key Personal Finance Concepts You Must Know for Financial Success

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