What is a Checking Account?

A checking account is a service provided by financial institutions (banks, savings and loans, credit unions, etc.) which allows individuals and businesses to deposit money and withdraw funds from a federally-protected account. The terms of a checking account may vary from bank to bank, but in general a checking account holder can use personal checks in place of cash to pay debts. He or she can also use electronic debit cards or ATM cards to access individual accounts or make cash withdrawals. Virtually every bank offers some form of checking account service for their customers. Some may require a minimal initial deposit before establishing a new account, along with proof of identification and address. A student or other low-income applicant may opt for a no-frills checking account which does not charge fees for the use of personal checks and other services. Others may benefit from interest payments by maintaining a high minimum balance each month. Some states are required by law to ...  more

A checking account allows a person or business to transfer money conveniently without the need for cash. Checks are negotiable documents written by the account owner giving instructions to the bank to pay money to a third party.  more

A checking account is the main account that you will use to access money that you need for day to day expenses. While it's called a checking account, there are many ways to access money in this account - a check is just one of them. You can also withdraw money from an ATM machine. You can draw on this account using a CheckCard or you can write a check. In the old days - before ATM machines and check cards were invented - checks were the primary way in which people accessed money in their checking account.  more