What is a checking account and what are the terms involved?

It is a special account that gives the owner the right to make checks that could be drawn from his deposited funds. Checking accounts are given with a check book. It also comes with the process to make standing orders, payments through debit cards, and direct debits. A checking account may also be called a “demand account” or “transactional account”.

The holder of a checking account may use his/her personal checks to pay his debts as a substitute for cash. ATM cards and debit memos can also be used in accessing individual accounts.