What Is a Checking Account?

A checking account is a financial account designed for daily use and spending, such as withdrawing cash from ATMs or buying groceries with a debit card. Checking accounts are available from banks and credit unions, including traditional brick-and-mortar banks and 澳洲幸运5开奖号码历史查询:online-only banks. 

How Checking Accounts Work 

Checking accounts are designed for everyday use. You can deposit money in your checking account at an ATM or receive your paycheck by 澳洲幸运5开奖号码历史查询:direct deposit. You can also withdraw cash from your account using an ATM, or use your debit card to pay for products and services with the money in your checking account. Checking accounts let you pay your bills online and send money through payment apps.

Checking accounts may come with a monthly fee, which is often waived if you meet requirements such as maintaining a minimum balance or receiving a certain amount in direct deposits. For example, the Chase Total Checking account costs $12 per month, but that fee is waived if you receive $500 in direct deposits, keep at least $1,500 in the account at all times, or maintain a balance of a𓆉t least $5,000 total in eligible Chase accounts. 

Many banks and credit unions offer 澳洲幸运5开奖号码历史查询:free checking accounts, which by law can’t charge monthly fees or require a minimum♉ balance. This type of checking account may offer relatively basic services but can often be enough for most people’s needs.

Some checking accounts pay interest on your balance, though they may require you to keep a certain amount of money in the account or make a certain number of transactions each month. These interest-bearing checking accounts typically pay lower rates than 澳洲幸运5开奖号码历史查询:savings accounts, but if you’re willing and able to follow the requirements to the letter, you can find good options.

Checking Account Features

ဣ What you can do with a c✨hecking account varies based on the type of account and the institution, so it’s important to read your account agreement carefully. Common checking account features include:

• Deposits: You can deposit cash and checks at an ATM or physical bank branch, and deposit checks using mobile deposit through your bank’s app. Direct deposit lets you electronically receive paychecks from your employer and government payments, such as tax refunds. 
• Withdrawals: You can use your debit card to withdraw cash at an ATM or from a bank teller.
• Debit cards: Tap or swipe your debit card at a retailer to pay with money from your checking account. Some banks and credit unions offer 澳洲幸运5开奖号码历史查询:zero-liability fraud protection in case your debit card is lost or stolen.
• Checks: Your checking account may come with free paper checks, or you may have to pay a fee for them.
• Fees: Your account may have a monthly fee, as well as fees for certain types of transactions. Review your account agreement so you understand what fees might be charged.
• Overdraft protection: Spending more money than you have in your account is called an overdraft. Some banks offer overdraft protection, a service that helps cover this type of transaction, but it usually comes at a cost. Make sure you understand 澳洲幸运5开奖号码历史查询:how overdrafts work in your account and avoid spending more than your account balance. Some accounts simply do not allow you to spend more than you have.
• FDIC/NCUA insurance: If you open your checking account at a bank that’s a member of the Federal Deposit Insurance Corporation (FDIC), your balance up to $250,000 is covered in case the bank fails. If your checking account is at a credit union, the National Credit Union Administration (NCUA) offers similar coverage.
• Rewards and bonuses: Some checking accounts offer bonuses for opening the account and meeting criteria like receiving multiple direct deposits or maintaining a minimum balance. Others offer cash-back rewards based on your debit spending. Read the fine print on any offers to be sure you’ll qualify.
  

Types of Checking Accounts

Most banks and credit unions offer at least a few types of checking accounts, though many won’t offer♐ all of these.

Traditional Checking Accounts

A basic checking aꦆccount usually doesn’t offer interest or rewards. It may come with a monthly fee, thoug♋h you can usually get it waived by maintaining a minimum balance.

Premium Checking Accounts 

A premium checking account typically requires a much higher minimum balance, such as $20,000 or $30,000. In exchange, it offers perks like waived ATM fees or special rates on loans or 澳洲幸运5开奖号码历史查询:certificates of deposit (CDs).

Joint Checking Accounts

A 澳洲幸运5开奖号码历史查询:joint checking account is similar to a typical checking acco🌌unt, bu🐭t two people have full access to the funds. 

Business Checking Accounts

A 澳洲幸运5开奖号码历史查询:business checking account is designed to handle the daily spendiﷺng and deposits of a small business. To 🌱open a business account, you’ll need to show documents proving your ownership of the business.

Student Checking Accounts

A 澳洲幸运5开奖号码历史查询:student checking account offers basic checking account features for high school💯 or college students. If the account holder is under 18, a parent or guardian typically needs to be a ♔co-owner.

Low-Balance or Lifeline Accounts

Aimed at people who haven’t had a bank account before or who earn lower incomes, these basic accounts charge low or no fees and don’t require a minimum balance. 澳洲幸运5开奖号码历史查询:Lifeline accounts are required by law in s🐈ome statesꦉ, such as New York. 

Second-Chance Checking Accounts

澳洲幸运5开奖号码历史查询:Second-chance bank accounts offer banking options for people whᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤🧜⁤⁤⁤ᩚ𒀱ᩚᩚᩚo don’t qualify for a traditional checking account due to a history of overdrafts or bounced checks.

Find options that might work for you on this from Bank On, a national nonprofit initiative.

Senior Checking Accounts

Age might be just a number, but adults over certain ages can qualify for 澳洲幸运5开奖号码历史查询:senior checking accounts with reduced fees or added perks. 

The Bottom Line

A checking account is a great choice for your everyday banking needs, such as receiving a paycheck and shopping with a debit card. Some checking accounts come with monthly fees, which you can usually avoid by maintaining a minimum balance. Many financial institutions also offer free checking accounts.