Understanding the checking account and its features
Checking accounts are a kind of financial service that all banks and credit unions provide to their customers. The features of checking account vary from bank to bank. Customers can withdraw money with checks as well as ATM cards. They can also use debit cards issued for this account to make their purchases.
Features of a checking account
While the features and terms and conditions of opening a checking account might vary from bank to bank but there are some general features that are maintained by all the recognised banks. These features can be summarized as follows-
- All checking accounts irrespective of the financial institution and region need their customers to maintain a particular amount of money in their account. This is called minimum balance. The minimum balance varies from bank to bank and in case the balance goes below the minimum balance amount within a billing cycle, the customer needs to pay a certain fee.
- All financial institutions issue checks with every checking account. These checks are helpful in withdrawing money as well as in paying creditors. Check books can be reordered. Some financial institutes issue new checks and charge fees where as there are others who issue new checks free of cost.
- The checks issued in this type of checking accounts contain all the essential routing and mailing information.
- With the advancement of modern day technology, checking accounts are also accompanied with electronic cards like debit and ATM cards. These ATM and debit cards can be used in other bank’s machines also.
- The checking accounts attract a fees in certain cases like insufficient amount, overdraft or on bouncing of checks.
- One of the best features of checking account is that a customer can apply for overdraft protection. This helps the customers to keep a credit line attached to their account that keeps their account from over drafting.
- There are no frill checking accounts that are offered to senior citizens and students. These accounts do not charge customers extra fees for the use of personal checks and other services.
Banks and financial institutes offer different facilities to its customers to check the balance and transactions that have occurred through their account. Checking accounts are a safe and efficient method of paying bills as well as depositing money from pay roll checks.
Benefits of checking account
- The checking accounts offer its customers the option of withdrawing as well as depositing money without any extra cost or fees.
- Operating these accounts are very easy and customer friendly.