What is a Checking Account?
People who need to store their money safely with banks or credit agencies need an account. There are different types of accounts such as saving account, current account etc. One of the most popular types of account that is designed for daily money transactions is a checking account. It allows users to perform the transactions such as depositing and withdrawing the money.
The account holders of checking account are given personalized printed checkbooks which can be used for payments in place of cash. In addition to the check, the account holders can use ATM cards or debit cards for functions like online payments, bank transfer, cash withdrawals etc. Thus, we can say that a checking account is a way that allows constant access to our money.
How Can You Open a Checking Account?
The procedure to open a checking account is just same as other bank accounts such current account. You will need some documents such as address proof, identification proof, and social security proof. You can use a passport, driving license etc. for id proof and address proof can be any electricity bill or pan card etc.
What Are Special Types of Checking Accounts?
There are few banks that offer some special types of checking accounts for customers with specific needs.
No-Frills Account: this is a checking account for bad credit or financially low customers. This account does not charge any fees for certain features and in turn, the account holder has few limitations in terms of withdrawal amount, interest earned etc.
Life-line Account: this is a checking account designed especially for senior citizens. This account does not charge fees such as ATM surcharge fee etc.
These special types of accounts vary from bank to bank. Depending on your need, you can find out the type of checking account that will serve your purpose.
So, these are few things you should know about a checking account. Hope this article will help you. Best of Luck.