Checkings Account

A checking account or transactional account is an account held at a banking institution that allows deposits and withdrawals. Also known as demand accounts, they can be accessed using ATMs, checks, electronic debits and other methods of payment. There are many types of accounts that can be classified under checking account including business, student and joint accounts.

Difference between a checking account and savings account

Both checking and savings accounts are bank deposit accounts. However, a checking account is custom made for day-to-day money transactions while money in a savings account is supposed to stay and earn interest over time. Also, unlike a savings account which has a limited number of withdrawals, you can make as many transactions as possible on a checking account.

Setting up a checking account

Opening a checkings account is easy at most financial institutions. However, one is required to carefully choose the type that fits their banking needs. Here are the general requirements when creating a checkings account.

1.Do extensive research and select a reliable and reputable financial institution that is suitable for your wallet and needs. Some banks have lower interest rates than others.

2.Put together all your application documents

  • Valid ID/Passport
  • Valid and working address
  • Opening deposit which depends on the institution

3. Once you have completed opening your account, you should get an ATM card and/or personalised check book

Major benefits of a checking account

  • A Checking account offers many advantages for people who make everyday transactions, making them a very popular
  • They make it easier to pay bills, thus minimising the chances of late payments.
  • If responsibly maintained, a checkings account can increase your credit score
  • It is a great way of ensuring that your funds are protected.
  • These accounts offer proof of transaction, which can be used for reference whenever needed and help you to manage your money.
  • Making online electronic payments costs less than posting checks, which can help you save extra expenses.
  • The money in your checking account is insured up to limits regulated by FDIC.

Best checking account 2017

Are you comparing checking accounts? Due to checking accounts getting more popular, financial institutions are in competitions to offer the best and most affordable services.

The best checking account 2017 MUST have the following features:

  1. It allows you to earn rewards like redeemable bonus points.
  2. It offers interest at above-average rates.
  3. It cuts on monthly costs by offering a small or no service fee.
  4. It has overdraft security
  5. You can access it through online banking and mobile apps
  6. Accessible support staff and customer care department

It is wise to do research before opening and making a deposit to your new checking account. Ensure that you have all the information you need and confirm that the financial institution of your choice is secure and trustworthy. A checking account should be able to hold all the money you may need for everyday activities, throughout the month.