Money management is one of the vital aspects of an individual’s life as well as business and this has brought significance to the concept of checking account and the essentials attached to it.
The changing times have brought a change into many things and among all this the money management is something that takes a lead. You earn money, you spend money and then you save money all this is related to the financial aspect of your life and in this circle the need of having a checking account is crucial.
What Does Checking Account Mean?
Identifying what a checking account means is the foundation of managing your finances, a checking account is that account where you keep your hard earned money and use it through different facilities when required. Everything moves in the accounting channel rather than keeping cash at home and spending from it.
The banks these days offer numerous benefits to the users of such accounts and this call for having these accounts in place. Similarly, the checking account is also one of the most beneficial options to consider for all age groups, the adults, teenagers and senior citizens everyone must consider the importance of such accounts.
Tools of Operating a Checking Account
Now, when you are clear about what the checking account means you must be having a number of questions in your mind like:
- Is my money safe?
- How will I withdraw my money?
- Is Withdrawal Possible anytime? Etc
Well, here we will provide you a perfect insight to what tools and terminologies are associated with a checking account and this way all the questions you have in your mind will be answered.
Safety of Money (i)
The money you deposit into any bank account is definitely safe and is insured, so it happens very rarely that you end up losing it in an incident and in case if ever you do you will be compensated. However, this is a rare event to take place and on the other hand there are a few things which you should take care of in order to ensure the safety of your checking account.
- Keep your account details a secret.
- Never respond to scam calls asking for your passwords.
- In case of theft of ATM or Debit card, immediately get the card blocked
- Keep your cheque book at a safe place
The safety of your checking account lies on your own shoulder more than the bank because banks always keep the data of their bank account holders safe but the account holders must avoid being trapped into any kind of scam so that their hard earned money is safe and secure and may be used for the right things at the right time.
Methods of Withdrawal
The next answer which you must be in need of is that how will you be able to withdraw money from your checking account. Well, when it comes to such accounts banks offer numerous choices you are provided with an ATM card and a Debit card and you can use ATM card for immediate cash withdrawal, whereas debit card can be used for shopping and making transactions from any point of sale while shopping for anything.
Moreover you can at any time withdraw money using your cheque book and also you can transfer money from one account to another using wire transfer, so the hassle of withdrawal is totally ignorable.
Types of Checking Accounts (ii)
Checking accounts do not just belong to one kind, there are numerous checking account options which an account holder may make the most of a few different kinds of such accounts may comprise of the following kinds.
- Standard Checking Account
The standard checking account is one of the most basic checking accounts which offer an easy handling scenario where the account holder has to maintain a balance limit which is minimum and at the same time the account holder is allowed to withdraw money using different techniques. These may be called as no fee checking accounts because by way of maintain a certain minimum balance your maintenance fee is being waived by the bank automatically which acts as a benefit to the account holder.
- Interest Generating Checking Accounts
These are more or less the same kinds of checking accounts as the standard ones are and all you get to enjoy here is the interest on your deposited money. These checking accounts offer an interest rate which may be an added income for you in the longer run. Checking account interest rates may vary from one bank to another but all of them help you enjoy a consistent growth in your money by way of using it at the same time.
- Checking Accounts with Rewards
Many checking accounts do not actually help you in growth of money but they offer you points which may be redeemed later on for different purchases. These points may be used for travelling, enjoying products and gifts and much more. These accounts are also capable of being used for your transactions anytime you want and come with a no fee checking account choice too, which means your fee may be waived by way of maintaining a certain amounts of balance in your account at all times.
Checking accounts have become much popular these days among all age groups and the main reason of their popularity is the benefits they offer and their ease of access. There are no restrictions on checking accounts like savings accounts and at any time any sum of money may be withdrawn.
Secondly, there are many options for the users like if you wish to earn interest you can choose that, you wish to earn rewards you can choose that and if you want to earn a bonus on sign up many banks offer this kind of feature as well. It is always suggested to consider the kinds, benefits and features you will be enjoying between different kinds of checking accounts and you may then make a better decision out of it.
- https://www.discover.com/online-banking/banking-topics/10-ways-to-protect-your-checking-account/
- https://www.forbes.com/advisor/banking/what-is-a-checking-account/