Bank accounts are a must now and when it comes to having hands on them there are so many options available. With each of them having their own features, checking account is one of the common kinds.
As the world is progressing these days everyone needs to have their hands in a back account, mostly businesses and transactions are now conducted either by using a debit card or credit card or by way of transferring money to your vendors and suppliers online. To cater all these things the best is to have a checking account signed up which helps in fulfillment of all the basic necessities a person may have regarding the banking transactions.
What is a Checking Account? (i)
A checking account is a kind of account where a person deposits their money and then withdraws when required, there are many checking account options available to the user and this may comprise of the following feasible aspects which make the life of a person easy.
- You can transfer money to any recipient you want with the help of checking account.
- You can withdraw money using ATM card.
- Purchases can be made from any stores by paying through debit cards offered under checking accounts.
- Bill payments are possible with the help of checking accounts.
- Withdrawals can be made through checks using these accounts.
Kinds of Checking Accounts
There are many kinds of checking accounts and every bank maintains its own kinds depending upon the kind of package they have designed for their users, however the basic kinds remain same all over the world and these are discussed below.
Fee Free Checking Account
This is a kind of checking account which brings no burden of monthly fee on the shoulders of account holders. It is called as no fee checking account which means that despite of having the account opened you are not required to pay its maintenance fee at all. The services offered are free of cost and allow you to enjoy the benefits of using a checking account without demanding any money from you. However every bank attaches some conditions with these accounts and not everyone qualifies to have them, there are some prerequisites that need to be followed and then the no fee checking account comes into being by the users.
Interest Earning Checking Accounts
You must have had some idea regarding the savings accounts and as the name suggests these accounts are pretty helpful when it comes to savings and they offer interest over your money, however there are numerous savings accounts which offer a condition of no withdrawal. Whereas, when you opt for a checking account with interest earning you can be assured that you will definitely earn interest on the money you have kept in your account but there won’t be conditions in place like there are in the case of the savings account. So, these could be pretty appealing and you can always get yourself money transferred or withdrawn whenever you want. However, the checking account interest rates might be lower as compared to the savings accounts and there might be a minimum balance requirement relatively higher than the savings accounts.
Premium Checking Accounts
As the name suggests the premium checking accounts are meant to cater some premium facilities to the account holders. The account holders having these accounts are provided with the choice of many value adding benefits like financial advices, rewards, checking account sign up bonuses and some fee waivers on a few services as well. This kind of account however has many conditions of minimum balance maintenance which are very important by many means and must be kept an eye on so that you may always enjoy the benefits.
Procedure of Opening a Checking Account (ii)
The procedure of opening up a checking account is fairly simple and has no extra efforts at all, by following a few simple steps you can easily have an account opened.
- The very first thing is that you collect all the knowledge regarding the checking account so that you may decide which kind of checking account do you need, once you have decided the kind you can move further.
- Secondly, think about which bank you would like to opt for when it comes to the checking account, there are many banks working commercially nowadays and you are free to make a choice of yours.
- After the selection of bank comes the branch, every bank has many branches all over the city and whichever is close to you it is preferred to choose that so that you may always have an easy access to it.
- After deciding all these factors you have to visit a relevant branch and take up the form of bank account signup from there.
- You are asked to go back home fill the form and attach the required documents with the form and submit it back to the bank.
- The bank runs a credit check on your profile once the form has been submitted and then you are required to submit the minimum balance which is the initial balance required to open an account.
- When filling the form make sure to mention the kind of account you look forward to open up and then submit the form because everything is decided in the initial procedures including the kind of account you wish to open up.
- If you are opting for a joint account with someone you will need to take that individual with you at the bank for signing formalities and their documents will also be required to be submitted.
Checking accounts have been so common among people nowadays that even the young aged individuals are opting for them and if you consider the process of opening up it seems very easy and convenient for everyone out there and there are so many added benefits that everyone feels comfortable with opening up a checking account. The money remains safe, easy to use and if chosen for interest earning may increase with the passage of time.