What to look out for in a checking account

Checking accounts are a simple way of paying a third party by way checks. It involves a process where in the account holder issues a check in the name of the recipient. The recipient then submits this check into his bank account. The bank then verifies the details of the check and forwards the details online to the bank account of the issuer. The money is then debited from his account and deposited into the recipient’s account.

Checking accounts are services provided by banks and other financial institutions. They offer a plethora of advantages. Terms and conditions of checking accounts vary for each bank.  Few of the features that this account offers are online banking, bill pay, direct deposit, ATM etc.

In a normal situation money deposit and withdrawal has to be done at a bank in person. With the advent of the online banking facility the tedious process of money deposit and withdrawal at a bank can be avoided. Individuals exercising an exclusive online banking facility are offered various perks by the bank Services charges are usually surpassed.   Direct deposit offers the advantage of direct deposit of one’s salary into his account.

Features to consider

Various factors should be considered prior to opening an account. One must familiarize himself with the terms of a checking account. The following are features to look out for in an account

• Convenience:  It is often a good idea to open an account at a bank with various outlets spread throughout the vicinity of your residence or work. Bank location is an important feature to consider. A bank should offer widespread ATM facilities. Internet banking is a useful service provided by banks. This is a user friendly method wherein all transaction fan be made online. One can monitor accounts, pay bills and transfer funds. 
• Fees: There are various types of fees associated with a checking account. Few accounts have an opening fee, monthly maintenance fee, fee for withdrawal from other ATM’s, minimum balance etc. Certain banks have offers where these fees are not applicable. This swings the advantage towards the account holder.
• Over draft schemes: If one issues a check greater than the amount present in the account the account holder is liable for penalty charges. These charges are charged in way of interest that is calculated on the amount exceeding the balance present. One should look out for overdraft protection.
• Fraud protection is another important factor to consider.