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Checking account

A checking account is a deposit account opened at a bank that allows numerous withdrawals and unlimited deposits. The checking account is the most liquid account and can be easily accessed at any time using ATMs, checks, online banking, credit or debit cards. Due to its properties, the checking account is also known as a sight or transaction account.

Many financial institutions offer checking accounts for very low monthly or yearly fees and banks have traditionally used this service as a loss leader. Loss leader is a marketing term that involves offering a product below its market value in order to attract consumers. Once consumers have been lured with free or cheap checking accounts, banks offer them more profitable products such as mortgages, personal loans, life insurance investments, or retirement funds.

Checking account features
Various types of checking accounts have been developed to meet the needs of users. These can be student accounts, business accounts, and joint accounts for households. As a rule, current accounts do not offer any interest due to their liquidity.

Current accounts can be easily set up for private individuals in bank branches. For corporations, you may need to go through a specific process depending on banking rules and government regulations. The checking account is one of the most practical solutions to keep your cash available for all transactions, e.g. For example, to pay your bills, buy goods online, and pay with a credit or debit card in a store. The current account is the simplest banking service and is used by almost all bank customers worldwide. This account gives you the freedom and convenience to access your funds instantly with no additional charges except in some cases transaction fees.

Some banks offer checking accounts with a certain credit limit that you can use in an emergency. If this is the case with your transaction account, you can have peace of mind knowing that you have access to extra cash at any time. In the meantime, you should be more careful not to exceed your balance without an important reason. Typically, this short-term loan comes with huge interest rates. For some people who like to spend whatever cash is available, a checking account with a line of credit may not be the best option.