Checking Account

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Checking Account

A deposit account held with a financial institution that allows for withdrawals through checks, automated teller machines, or debit cards. Typically pays no interest or lower interest rate as compared to Savings account

Checking Account

An account at a bank in which a customer deposits money for immediate use. For example, one may utilize a checking account for one's monthly expenses, such as a mortgage payment or groceries. Because most customers keep money in a checking account for a shorter period than in a savings account, a current account pays a slightly lower interest rate. Typically, one can write a check or use a debt card on a checking account, and banks expect customers to do so. The term "checking account" is more common in the United States. In the United Kingdom, the common term is "current account."

Checking account.

Checking accounts are transaction accounts that allow you to authorize the transfer money to another person or organization either by writing a check that includes the words "Pay to the order of" or by making an electronic transfer.

Banks and credit unions provide transaction accounts, as do brokerage firms and other financial services companies that offer banking services.

Money in transaction accounts is insured by the Federal Deposit Insurance Corporation (FDIC) up to $100,000 per depositor in each banking institution. However, the FDIC doesn't insure money market mutual funds that offer check-writing privileges.

References in periodicals archive ?
According to industry research, people keep checking accounts for an average of 10 years, but cell phones for only two years, jobs for 4.
The 10 best national and online checking accounts carried an average APY of 0.
Low, Fair and Simple Fees: GoBank s pricing makes it one of the most affordable checking accounts in the banking industry.
4) The reaction of banks to regulated interchange fees Amid uncertainty about how regulated banks would react to these revenue losses, some banking industry observers predicted a rise in checking account fees and widespread elimination of free checking accounts for consumers.
3 percent of all checking accounts offered are in this category.
com found that 96 per cent of the nation's largest credit unions offer a checking account that is free, or can become free with minimal effort.
Industry sources claim that banks need to spend between USD250 and USD300 a year to maintain free checking accounts.
Interest-bearing checking accounts can often offer rates that are comparable to or even better than Certificates of Deposit (CDs).
With a debit card, payment for a purchase is withdrawn directly from a checking account.
She has a checking account that she sometimes uses to pay rent.
But then, during a weak moment, McKinley stamped the bank's endorsement on the back of the check, signed his own name below, and deposited the proceeds directly into his own checking account.
Californians also are forced to maintain some of the highest average balance requirements to avoid fees, with a required minimum balance averaging $811 for checking accounts, ranking California 33rd out of 34 states.