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 ?
Access for all citizens to basic financial services, such as a current bank account, was put firmly on the European agenda, on 28 May, with a European Commission conference on financial inclusion.
DEFAULT charges outlined in mortgage, current bank account and store card agreements could be cut by an average 60 per cent, Birmingham lawyer claimed.
CATHERINE Johns, pictured, has a current bank account, four credit cards and no savings.
The response I've received explains that the account was introduced as a stepping-stone for those who did not feel that they were yet ready to open a high street bank account and does not offer the same flexibility as basic or current bank accounts.