Checking account is one of the most common kinds of the account used by everyone. It allows people to enjoy several advantages associated with it and has a lot of ease for daily transactions.
Bank accounts may belong to different categories and kinds, when it comes to looking forward to these accounts you may have the two very common ones known as checking account and savings account. The concept of bank accounts especially checking accounts is increasing day by day since a lot of benefits are associated with this kind of account. In addition, at one point where it offers you other advantages, it also keeps your money safe and you can withdraw it anytime you need using different means of withdrawals.
What is a Checking Account? (i)
A checking account is the most basic kind of bank account. The account holder deposits money in this kind of account and then withdraws money from it when required. This kind of account may be accessed through checks, debit cards, and ATM cards too.
Steps to Open a Checking Account
When it comes to opening up a checking account a few steps may be followed as they prove to be very easy ones:
- When you have decided to go for the checking account, you may assess the different banks and their offers related to these checking account options. Choosing the most suitable bank is always important; it should have a well-known reputation and must be a going concern. It would be great if the branch is closer to your house.
- Upon reaching the bank, you will be required to fill a form that will be having all the details of you along with that you have to submit a few essential documents that are needed for opening an account.
- Most of the banks ask for an initial deposit when you get yourself a checking account and for this, some minimum amount of money will be required to be deposited.
- You can choose if you would like to have an ATM or debit card service and you can easily get yourself the service accordingly.
Fee Associated with Checking Account
When you are taking services from the banks in the form of a checking account some kind of service fee will be deducted by banks, the two most common kinds of fees that a bank may deduct comprise of the following:
The service fee that is deducted every month is for the services which bank provided you in return for having a checking account in place.
An overdraft fee is also a kind of fee that may be deducted by your bank if you withdraw an amount of money from the bank that is beyond the availability of cash help by you; against the excess withdrawn, you are supposed to pay the fee.
Why Have a Checking Account? (ii)
Looking forward to the benefits a person may get to know that the idea of having a checking account is worth having, a few of these may comprise of the following:
Versatile Payment Options
The world these days is moving less on cash and more on cards and account transfers. When you have a checking account in place you can easily make payments through different versatile means, shopping through your debit card eliminates the need of carrying cash. Similarly, when you have to make other payments instead of withdrawing cash on your own you may directly transfer the money into the account of the receiver. This eliminates the hassle of taking cash here and there and is a safer option. You can also make international payments through your checking account.
Quick Bill Payments
Utility bills are a part and parcel of every individual’s life and this bank account may be a perfect choice. Checking accounts allow people to streamline or automate their bill payments and with this, the hassle of visiting the physical places to pay bills and standing in lines for hours and hours is eliminated.
When you pay cash in many instances, you will not have proof of such payments. However, when you pay through your bank account you are at ease that you will have proof to show. The checking account statements allow you to have records of many years and you can easily trace the transactions from all the periods since you have opened the account.
Most people may get the best advantage out of the checking account signup bonus. Banks do this to promote the concept of having checking accounts among the public at large and this acts as a financial benefit to a lot of account holders. However, this kind of bonus might be attached to a certain kind of limit that must be deposited to the bank.
Withdrawals for Emergency
The best thing about checking accounts is that there are no limits on your transactions and you can withdraw any sum of money you need. Even in case of emergency, you can withdraw from ATMs even in the middle of the night. Therefore, your cash is not going anywhere and may be used when required; it is just subjected to a safer resort.
There are several different benefits, which people may enjoy with the checking accounts, and this may comprise of having a no fee checking account, promotions and discounts on using your debit and credit cards, earning interest through checking account interest rates being impressive. All this adds a lot of value and attraction to the checking account and may compel many account holders.
These days checking account is such a basic form of utility that is being held by almost everyone. Especially when you are working and your employer deposits your salary directly in the account you will need a checking account for this. Using a checking account allows you to manage your money in a better way and all your deposits and payments or withdrawals are done under one account. You will have a trail of every transaction and it is the most convenient means as well.