What are the types of checking accounts you can choose from?
Financial institutes like banks offer services to open a transactional deposit account where customers can withdraw as well as deposit money. Such accounts are called checking accounts. The money deposited in the checking accounts are very liquid and offer number of withdrawals through checks, automated cash machines and electronic cards like ATM and debit cards.
Different types of checking accounts
Financial institutes offer different types of checking accounts that have been customized to meet the needs of the customers. All checking accounts are under the jurisdiction of the bank’s terms and condition, requirements, fees and benefits. The different types of checking accounts that are commonly offered by the financial institutes are as follows.
- Personal checking accounts- Personal checking accounts, as the name suggest are accounts that are created on the name of the customer. It has no nominees or joint holders. Personal checking accounts can again be of two types – basic and free checking accounts. Basic checking accounts have limitations to the number of checks that can be used and have a monthly maintenance fee attached to it. Free checking accounts do not have any such constraints and neither have limitations to the number of checks nor do they charge any additional fees.
- Joint checking accounts- These are different from personal checking accounts in the fact that they have joint holders. The accounts are shared by two people who are usually spouses. These kinds of checking accounts are used to take care of shared and daily expenses.
- Student checking accounts- As the name suggests, students are offered such accounts. They are given additional incentives like higher interest rates and free checks.
- Second chance checking accounts- These checking accounts are specifically offered for customers with bad credit history. These types of account do have some monthly maintenance fee attached to them. Since a person with bad credit history cannot obtain accounts elsewhere so the second chance checking account can prove to be a good way of bringing back his credit history on lines.
- Small business checking accounts- These checking accounts are a little different from the other checking accounts. These types are offered to small business holders to pay their daily expenses. There are certain conditions that the customer needs to meet for qualifying to open a small business checking account. Some banks also limit the monthly transaction amounts.
Checking accounts are the most popular way of keeping money in the bank. As the money kept in such accounts are liquid and can be withdrawn at any time without incurring charges so the nation wide average balance is used to calculate the M1 money supply in the economy.