Checking Accounts Overview

Checking Accounts Overview

A checking account in a banking institution is an account opened by an individual for the purpose of crediting money to it and then using it. Funds on checking accounts can be used for any transactions (withdrawal, transfer, payment). The only thing that is prohibited is conducting business activities using a checking account.

Checking account transactions

A checking account can be used to transfer:

  • Loans and debts;
  • Deposits and interest on them;
  • Transfers from ordinary citizens, individual entrepreneurs or companies;
  • Cash.

Expenditure transactions on the checking account include:

  • Cash withdrawal (money is available through ATM or cashier);
  • Transfer for registration and (or) depositing funds for open deposits;
  • Transfer to the accounts of companies, individual entrepreneurs or ordinary citizens;
  • Payments for credit and other types of debts.

How to choose a bank to open a checking account?

One of the biggest challenges for many people is choosing a banking institution suitable for opening a checking account. Here you should focus on the following criteria:

  • Reliability of the credit institution. For more information, you should examine the ratings of banking institutions, expert reviews, the opinions of friends and associates. You can select a financial institution in which you have already opened an account (for example, a business account). After the analysis, it is easy to draw a conclusion about the reliability and reputation of the credit institution;
  • A number of terminals / ATMs. A big advantage is a fact that the credit institution has a lot of devices for withdrawing/depositing funds. This simplifies the process of using the checking account;
  • Availability of online service, SMS- and Internet-banking. Thanks to such options, it is much easier to manage money and make withdrawals/deposits;
  • Possibility to get a plastic card linked to your account. In this case, online use of the services is available;
  • Availability of other products on more favorable terms. Many banks offer their current customers additional services at a more favorable price (on preferential terms);
  • Profitability of tariffs. An important factor is the costs that a bank client has to endure when opening a checking account. The following factors should be taken into account – a monthly fee, the cost of opening an account, commission and others.

What do you need to open a checking account?

To open a checking account, an individual must prepare the following package of securities:

  • identification code;
  • personal document (ID);
  • application form;
  • agreement with the bank to open a checking account.

Non-standard situations when working with a checking account

A banking institution has the right to seize a vehicle and block any operations in the event of:

  • imposition of penalties;
  • bankruptcy of an individual;
  • tax debts or other budgetary payments;
  • alimony arrears;
  • using a vehicle in violation of the agreement concluded with the bank.

In a situation where the money is credited to an already closed vehicle, the credit institution transfers it to an internal account until the circumstances are determined. To receive funds, the client is obliged to transfer to the financial institution a package of papers confirming the right to receive them. If this does not happen, the credit organization sends them back to the sender with an explanatory e-mail.

If there are no transactions on the checking account for an extended period (stipulated in the contract), the account is simply closed. In this case, the following conditions must be met:

  • zero balance;
  • no debt;
  • advance notification of the client (stipulated in the agreement).

How to ensure safety?

To ensure the safety and block access of strangers to the checking account, it is worth taking a number of measures:

  • You must have the phone number of the banking institution’s support service and the manager’s phone number in your phone;
  • You must connect remote access systems, including online and SMS banking. In this case, you can timely receive information about changes in the checking account;
  • You must remember the secret phrase (word) by which the bank identifies a person (when talking on the phone);
  • Ensure the safety of logins and passwords required to visit your personal account;
  • Be careful when conducting transactions using cards (when withdrawing cash, paying for goods and performing other transactions).

Opening a checking account is a path to convenience. The main challenges are choosing the right financial institution, complying with the rules and following security requirements.

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