A checking account, also known as a transaction account, is a deposit account held at a bank or other financial institution that allows the account owner to access their funds on demand. Checking accounts are designed for everyday use and are different from savings accounts, which are meant for long-term savings. Key features of a checking account include:
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Access: Checking accounts are available to the account owner "on demand" and are available for frequent and immediate access by the account owner or to others as the account owner may direct. Access may be in a variety of ways, such as cash withdrawals, use of debit cards, checks, and electronic transfer.
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Deposits: Checking accounts allow you to deposit money that you can then draw against to pay bills or make purchases. They are typically designed to accept a variety of deposits, including direct deposit, mobile check deposit, and ATM deposits.
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Fees: Checking accounts can have fees, such as overdraft fees, monthly maintenance fees, and charges for using non-bank ATMs.
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Types: Checking accounts come in several types designed for different purposes, such as commercial checking accounts for businesses and student checking accounts for college students.
Overall, checking accounts are a convenient way to manage your money for short-term expenses and everyday use.
