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Regular Checking Account
A popular type of bank account available to private clients today is the regular checking account. These accounts provide you with the facility to pay for goods and services using a checkbook. After credit cards, payment by check remains the next most common method of paying for goods and services chosen by banking consumers. In addition to paying for goods and services, check account holders can also send money to family and friends as well as transfer funds from one account to another, either within the originating bank or to accounts in other banks across the country. Checking accounts are flexible, quick and safe, providing users with more facilities than many other banking products. Most banks will also provide their checking account clients with Automated Teller Machine (ATM) cards used for withdrawing cash from ATM machines. Some ATM cards can also be use to directly pay for goods and services.
As well as being a quick and easy method for paying for goods, a number of banks also provide their checking account clients with interest payments on any positive balance in those accounts. Various methods are used to calculate these interest payments, but most banks will require a minimum threshold to be maintained throughout each month prior to interest payments being awarded. Interest bearing checking accounts are often called “negotiable orders of withdrawal”, or “NOW” accounts. Those accounts that only provide a checking facility without any interest bonus are normally called “demand deposit accounts”.
While it may appear obvious that the best type of account would be an interest-bearing check account, be aware that there is no such thing as a free lunch, especially in the world of finance. Each bank will maintain a schedule of fees for every individual service they provide. This includes fees for the provision of checkbooks, as well as charges per check written. Clients may also be charged a standard monthly fee simply for being a member of the bank. Before you open any bank account, make sure to request a full list of all fees that the bank will charge. Some banks apply so many extra charges that these can outweigh the benefit of their interest-bearing check accounts. Ask first, or you’ll pay later…
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