Checking Accounts
Checking Accounts Meaning:
In banking terminology, the term Checking Account refers to a bank account in which the account holder may write checks on money placed on deposit. A Checking Account generally pays little or no interest on its balance to the account holder.
In banking terminology, the term Checking Account refers to a bank account in which the account holder may write checks on money placed on deposit. A Checking Account generally pays little or no interest on its balance to the account holder.
For example, having a Checking Account makes sense for many people who need to have access to their funds, but who do not wish to carry cash, keep cash on hand in their homes or send cash through the mail. While savings accounts may in some cases earn a nominal interest rate, a Checking Account will be more likely to have a monthly service fee charged to the account holder. Many Checking Accounts come with a bank issued debit card which allows the account holder to access their funds through Automatic Teller Machines or ATMs. For some checking accounts, known as Negotiable Order of Withdrawal or NOW accounts, the bank will also pay out a certain rate of interest, which is usually considerably below Interbank market rates.