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    What Is A Checking Account?

    By Richian | July 24, 2015

    Checking accountA bank account which is used most frequently used by the people is the checking account. Checking is generally used to write a check for the purpose transferring the money from your account. But in today’s time you have got a option of making use of a debit card or even ATM card for the purpose of withdrawing your money. If you are of the opinion that checking accounts is similar as of savings account certificate if deposits than you are wrong. Checking accounts are different from them. In these things there are some of the restrictions in case of accessing your funds. In case of checking accounts, you can also avail checking account bonuses such as gift cards or cash only for signing up.

    If you are opening up your checking account for the very first time, you need to keep your monetary balance running if you want to keep the track of the amount which you possess in your account. This thing is very helpful to you. It is beneficial in a manner that it will prevent you if you are overdrawing your funds from your account. Along with this it is also very necessary to balance your account every month. By doing so if there are any errors it will be easily caught. This errors can be made by either you or it can also be made by the bank both types of errors will be easily caught.

    These errors can be like depositing the amount to the wrong account or even unauthorized transactions. Many of the times it is possible that your money is not immediately or instantly available to you. Thus it is very necessary to understand the policy of your bank and act accordingly. You should know at what time your deposit will be made available to you after getting it into your account.

    You might come to know that many banks offer varied options when it is the case of checking account. You should carefully analyze the features of the each type of account and get to know its details, pros and cons and check out whether it meets up your banking needs and then opt for the most suitable one. Carefully check the minimum balance requirements of the bank. You don’t intend to end up with the minimum balance you cannot keep up and end up your account. There are certain accounts where there is also a limit on the number of checks or the number of debit transactions which you can operate per month.  Some of the accounts are also restricted on the number of bill pay transactions. You should properly know these limits and be sure that you will be able to handle all this and manage and behave accordingly.

    Get to know about the overdraft protection system of your bank. A checking account is always insured by the FDIC up to a limit of 100000$. Thus it’s really necessary to have a checking account about which you have perfect knowledge and information.

     

     

     

    Topics: Finances, Personal Finance | No Comments »

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