The Essence of Checking Accounts

The essence of a checking account is basically within its feature that the account holder is able to write checks to represent the monetary value of his or her transaction. This feature is the most acclaimed feature of checking account because of two major considerations- convenience and security.

Checking account holders have the advantage of being able to walk around with his or her money without having to worry about being victimized by thieves. Convenience is also a primary consideration in getting a checking account. Most checking account holders opt to get this type of account simply because it allows more mobility and accessibility.

Finances are more accessible because they can get hold of their finances by just writing a check. Finances of checking account holders are also more mobile and fluid because of the new features of most checking accounts such as online banking and wire transfers. However, these features are still in the process of being fully integrated in the checking account field.

The logic of using a checking account is simple, a check is written through credit union, banks institutions, savings institutions and the account owner. These financial institutions order the financial transfers in the name of the payee under the approval of the issuer. Checks will not be recognized by the liable parties such as banks unless the payee and issuer have issued signatures or letters that recognize that the transaction is legally and financially bounding.      

Aside from convenience and security, account holders enjoy more advantages from checking account issuers. Benefits such as evidence of payment, safer than cash, cheaper than postal money orders, lots of access options and no transaction limits are also enjoyed by checking account holders. These benefits add more value to getting a checking account aside from its convenience and security main features.      

Evidence of payment- check writing is an effective way of making a reliable payment history. Checks always leave a paper trail that checking account holders can use to validate the payments and bills they have already made. Every time a check is written and issued it comes with multiple sets of records that prove that the checking account holder has already settled his or her recent financial responsibility.

These records are essential in recording and assessing tax responsibilities. Such records can be used in proving tax deductible charitable donations to lessen the amount of tax that the checking account holder has to pay. Copies of cleared checks are made available through online and snail mail even up to twelve months after the payment has been made. Banks and most finance service providers are able to provide copies of checks through their massive transaction archives.

Checking account holders also enjoy the benefit of having a mean of finance transaction which is safer than holding cash. The paper trail that checks leave offer protection from theft, aside from the fact that it allows its account holders to shop and make purchases without having to carry money. Adding to this, checks are even cheaper than postal money orders. Even in there are checking fees, it is still cheaper than money orders.

Checking accounts also offer lot of access options where checking account holders can use their checking accounts. And lastly, checking accounts do not have transaction limits. In most cases, checking accounts do not have transaction limits as prescribed by the Federal government.

These benefits make checking accounts more and more viable for individuals who would want to improve their finances through applying for checking accounts. These benefits seek to improve not only the basics of checking accounts, but it also seeks to improve other finance related transactions such as credit history and payment history.