A Consumer Guide to Checking Accounts
Checking accounts are so-named because historically, people that wanted to access money in the bank had to either go to the bank, or write a check to do so. It is hard to imagine this scenario today. While some people still use checks to pay bills or make other payments, online bill pay programs, debit cards, and other direct withdrawal methods have eliminated much of the reliance on paper checks.
Opening a checking account is fairly simple with most banks. This is especially true with a basic consumer account. Applicants simply complete a form, often done online, and share some personal information with the bank. There are various types of checking accounts that offer different options. Some accounts are free or basic accounts that charge no fees but offer no extra perks for consumers. Other accounts may provide small interest for money in the account or other perks, but may charge monthly maintenance fees.
Retrieving cash from the account is often done through electronic ATM machines rather than in the bank. Payments for products purchased in stores are routinely handled through debit cards that directly pull the funds from the account. Online purchases can be made with debit cards or through e-check programs that pay directly from the account. Many banks offer online bill pay where consumers can even have their bills paid directly from the account as opposed to with a paper check.
Putting money into the checking account is easy as well. Most banks have ATM machines spread through their coverage areas so consumers can use their ATM, or debit cards to make deposits without going into the bank. Many people have their paychecks directly deposited into their checking accounts, which makes the funds more immediately available and reduces potential holds placed on a deposited check.
All of these benefits have made checking accounts much more functional and easier to use for consumers. The competitive banking industry has also caused many banks to offer extra benefits with checking that did not use to be available.
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