Tips for proper handling of a checking account

A checking account is a typical bank account offered by banking institutions and credit unions facilitating the customers to maintain an account towards deposit and withdrawal of funds. The account is offered for individuals as individual checking account and for legal entities as business checking account. The rules and regulations of a typical checking account may vary according to the bank. Most of these accounts are offered with debit cards or ATM cards mobilizing easier transactions.

The checking account needs to be maintained systematically because such an account increases the credit rating and credit worthiness of the individual holding that account. When the checking account is maintained at a good standard as prescribed, the customer may avail numerous benefits and offers from the banks. For instance, instant approval of any type of loan or short term credit facility. 

The following are few to tips towards maintaining the checking account.

First and foremost thing is to protect the account details like account name, number and routing details of the bank and  ensure that this information is not leaked out to anyone you don’t know. Any stranger, by utilizing the account information can create a demand draft, which is also called as ‘remotely created check’ and can withdraw the money from account. You can provide the bank account information even to the company you are dealing with only if you are familiar to them and moreover, you can provide the account information only after initiating a few transactions. No appropriate representative from bank or phone banking office will ask for your debit or ATM card numbers and other personal information.

The account holder should have a periodic examination on the transactions of the checking account and review the monthly statements issued by the banks to ensure no unauthorized payments or withdrawals are entered. He should inspect all payments issued through checks, debit card and ATM withdrawals, auto debit transactions, e-transfers, etc., When an unauthorised transaction is noticed; the same should be reported to the bank immediately. Moreover, frequent scrutinizing of accounts is not a difficult task, as most of the banks offer the facility of online banking facilitating to check the transactions instantly.  

The account holder should notify the problems faced towards operating the checking account to the bankers as soon as possible. The sooner the problem is notified to the bank, the sooner they will be solved by the banks. It is recommended to report the problem in writing and to keep a copy of the report until the problem is resolved by the bank. 

The account holders should maintain the balance reports before authorizing any payment or issuing checks. The checks are processed more quickly like an instant cash withdrawal and the account is debited sooner.  Similarly authorisation of auto debit payments or electronic payments is required by insurance companies, credit card companies, etc., through which the money is debited from the account quickly. The account holder is charged with a penalty or an additional fee, if any of the above mentioned payments return unpaid due to insufficient funds. Few banks require the customer to maintain a minimum required balance and the account holder should ascertain that the same is maintained constantly.