Checking Account

A checking account is designed for convenience and frequent use. Money can be deposited and withdrawn at any time, and most accounts come with a debit card, online banking, mobile payments and the ability to set up regular payments.

The name comes from cheques, also spelled checks, which were traditionally used to pay from these accounts. Cheques are now used much less, but the name remains in the United States and some other countries. In the United Kingdom and many other countries, the same type of account is called a current account.

Checking accounts usually pay little or no interest. Some charge monthly fees, which may be waived if you keep a minimum balance or have your salary paid in. Some offer an overdraft facility, allowing you to spend more than your balance up to a limit, usually at a cost.

For example, a person might have their 3,000 monthly salary paid into their checking account, pay rent and bills from it by automatic payment and use the debit card for daily spending. Keeping track of the balance helps avoid overdraft fees.