Checking account is referred to a transactional account which is well designed for helping the customer to manage day to day activities relating to cash inflow and outflow through the processing of transactions. Most of the adults and even teens and young adults are having a checking account. Whether one should make a checking account, or not, depends on his or her own sensitivities. This account is specially designed to help the customer to easily receive and pay cash out of his/her bank account on an ongoing basis. In order to pay for the goods or services rendered, the customer needs to write a cheque against the money available in the bank account. The money will be deducted from his/her account.
People who most commonly use checking accounts are also having access to debit cards, ATM and credit cards. If you need to withdraw cash or make a purchase of merchandise/services the money will be deducted from the checking account by which it is registered. Checking account differs from Savings account as the former is used to make and receive frequent payments. However, the latter is referred to a place to keep the cash so that one does not need to hide it in the freezer or under the mattress or so on and so forth.
There are a lot of pros and cons of a checking account. It would be quite difficult to capture all of them. However, the main advantages of this account is that one can pay his/her own bills or for goods and services rendered without carrying or worrying to carry much of cash and avoiding interest charges which is incurred when transacted through interest charging credit card. It even allows the banking customer to conduct online banking which shall comprise of balance transfers and issuing payments.
Some of the disadvantages are that one cannot earn interest on the money deposited which is there in the saving’s or money market account. The second one is that one needs to continuously pay per check for monthly fees every month to keep the account active and working. Overall, it is a good account to deposit if the day to day financial transactions are recurring in nature.