Precaution to be taken with a checking account

It is a laborious and time consuming job to visit the bank each time an individual wants to either withdraw or deposit money into his account. This task has been simplified with the introduction of a checking account. In the present day scenario it is pretty difficult to get by, without having a checking account. It has become an essential commodity for any individual who has entered adulthood.

Checking accounts are services provided by banks and other financial institutions. It provides the advantage of money withdrawal and deposit, without requiring the account holder’s presence at the bank. It is an easy and time efficient method for managing ones bank account. Money can be transferred to a third party by a mere issue of a check.

The bank issues a certain number of checks to the account owner. The account holder can make his payments to a third party by carefully filling out a check. The recipient then has to submit this check at his bank. The check information and details will be verified and submitted online to the account holders’ bank. The money is then deducted and transferred to the recipients account.

I t is necessary to own an ATM or a debit card. This card gives you the power to access your funds through an ATM machine. For e.g. if one wants to withdraw money from his account all he needs to do is swipe the credit or the debit card at an ATM.

Precautions

The following are a couple of tips and guidelines one should follow in order to enjoy the complete benefit of a checking account.

• Withdrawals as far as possible should be made at an ATM owned by his bank. The reason being, the account only offers a certain number of withdrawals form an ATM of another bank without fee free. If this number is exceeded, fees will be charged on every withdrawal.
•  Make sure that you have sufficient balance in your account prior to issuing a check. In case the funds in the account are below the value of the check the check will bounce. The account holder is then subject to hefty penalty fees.
• Make sure, not to assign checks to the balance account. Keep a close eye on your check book. Manage you check book diligently.
• Maintain a record of all the bank receipts. It is amazing how often banks make mistakes. The receipts will then act as source a cross reference.