A Guide to Checking Account for Beginners

Now days, it is common to have a checking account in bank. It is used to speed up few day-to-day activities. If you are planning to get one, there are few things, which you should be familiar with.

Generally, people go and simply get an account in whatever bank they like without any planning. By learning a few things, we can manage our accounts with ease in peace and avoid loss of money. If you’re in a beginner level, then familiarizing with few terminologies is also important.

Checking account can be defined as an account into which you deposit money and withdraw for shopping, paying bills etc. It is not to save money and is only to deposit and withdraw. Below is the guide for selecting checking account for Beginners

Important aspects to consider before getting a Checking Account:

Fees: There are few things that banks don’t highlight and bring to customer’s attention. These include overdraft, service charges.


If you withdrew money more than in your account in any case, like buying goods on online or writing a check for amount worth more than the cash in your account, the bank pays the difference and charges you for it. There are overdraft conditions mentioned in print for customers. The hidden point is that they charge you for each transaction you use an overdraft.

Service Charges:

Banks generally make an income on the money borrowed by customer as a loan and for the various financial services, they provide. There are also service charges that are used to generate income from accounts that maintain low balance. These are collected from account holders who always maintain low balance in their accounts, when they withdraw or write checks exceeding the limit. However, the accounts with good sums of cash earn an interest for the account holders and income for the banks.


Every bank provides a few free transactions. The limit differs from bank to bank. If you are a person to use many transactions i.e. to pay your bills etc then be aware of the limit. Once the limit is crossed they charge you.

Free Accounts:

The main purpose of having a checking account is to deposit your paycheck and to withdraw when needed. This implies that, your account is not going to remain empty. With this assurance, the banks will offer you a free checking account, if you deposit your paycheck with them.

Electronic Funds Transfer:

It is a way, in which money is directly transferred into one’s account. Many banks offer this facility free of charge, and it is fast.


They are easy to use, completes the transaction quickly and saves a lot of time. But, the point to note is that if the transaction is made in another bank’s ATM, you’ll be charged. Few banks offer a free limited third party transactions and charge after crossing the limits. So, it is better to know about your ATM transaction limitations to avoid extra charges.

Cashless Banking:

Debit card, it is not only easy to use but also makes one feel safer. A few banks offer zero-liability fraud protection, check the policies of the bank to avail it.

Leave a Reply



Account Type:

Select Amount:

Select term:


  • No minimum balance
  • Competitive rates, No risk


  • High rates, Access to money
  • FDIC Insured