Information about the checking account you need to know
Every bank offers certain services to its account holders. Usually, for opening an account a Bank will have a few initial rules like they would require some sort of identification proof of the person who intends to open an account, they will need address proof and some times they ask for some introduction from some person who already has an account in that particular place.
There are a few options available according to the person’s ability of investment, he or she may go in for an account which may just charge minimal service charge or not charge anything at all for using the services of the bank. Usually persons who come under the low income group like students or others may go in for this type of facility. The bank also will require its patrons to have a minimum amount or deposit in its bank for using its services. Some Governments have made a few rules where in senior citizens or certain low income group persons may have a life line checking account options available for them. These types of accounts may have the added bonus of not having to pay monthly service charge, or minimum balance in the account, or extra charge for using ATM facility.
A person can withdraw cash from the bank by using debit cards, by withdrawing cash from ATM, or by using checks .The account holder in a bank is issued a book containing checks with all the necessary routing and mailing information When a person needs to withdraw money all he has to do is fill up the necessary things like his name or to whom he wishes to give the cash to, the amount to be withdrawn, the date etc and give it to the bank official. The bank accountant verifies the check for signature, and other information, and passes it. And then the bank debits the money from the account holders deposit and enters the same in his account data and the cash is given to the person. Similarly the account of the person is maintained by the bank by entering all the transactions a person does either while depositing or withdrawing the cash form ones account.
There are a few rules to be followed while using a check. Most of the banks expect the customer to maintain a minimum balance in the account, the amount one wishes to withdraw should not be over the amount which is available in ones account, etc. It is the duty of the account holder to honor a check which means he must issue a check only when he is sure that he has the required money available in his account. In case a person issues a check which is called ‘Bouncing’, he may have to face legal charges, as well as the bank may have recovered the service charge too.
When one has had an account for a long time in a bank or has been maintaining a good customer relationship with the bank in such cases the bank may honor the check and inform the account holder such an issue has occurred and it will be termed as ‘overdraft’. This can very well be avoided if the statements of accounts are taken from the bank and are maintained well.
The status of an individuals account can be checked by oneself while using ATM, which automatically issues a balance slip as well as current status if asked. The bank also generates monthly statements which are nothing but the status of the account holders finances in the account, it will state the number of times a person has deposited (credit) or withdrawn cash (debit), and after all the entries the correct available cash balance. Nowadays banks also provide tele banking option by which account holders can call and check their accounts.
A checking account provides a safe and efficient way of paying bills, depositing money. This account may not yield more interest like in a savings account, but as long as the account holder maintains proper records of the finances, there is no problem. Routine payments like mortgage, installments payments, rents, routine bills etc can easily be paid using this facility.
