What is Checking Account? Types of Checking Account:
Checking Accounts are being more popular in present time. Many people choose to open a checking account over savings bank account. The only reason is that checking account allows them to access their account unlimited times in a month. On the other hand, Savings Account comes with restrictions of accessing the account several times in a month.
Almost all banks and credit unions offer to open checking accounts with various promotions & schemes. Please keep in mind that the interest rate is little or very low in checking accounts. But there is no limit on number of transactions per month in checking account. you won’t be charged any fees for accessing your checking account more times like savings account or certificates of deposit.
What is Checking Account?
A Checking Account is a types of bank account like Savings Account and CD Accounts. When you open a checking account, you will get easy and any time access to your money without any restrictions. You can withdraw cash, pay using check card (debit card) and write checks to pay/transfer money to others’ bank accounts.
Types of Checking Account
It is better to know the checking account types before we move towards how to open a checking account. Nowadays banks and credit unions have come up with various checking accounts with different features and services. You should choose the checking account which meets your requirements and eligibility criteria. Here we provide all types of checking accounts as follows:
01. Regular or Standard Checking Account
This checking account is for those customers who want physical presence of the bank/organization. Standard Checking Account Holders can access their account by visiting bank, writing checks and using ATM Machine. The customers have to keep minimum balance to waive monthly fees.
02. Joint Checking Account
You can also open a checking account that can be accessed by more than one persons. Such account is known as Joint Checking Account. You need to submit request to the bank for opening a joint checking account for you and the other person(s). One of the account holders can access the account through checks, check card and ATM.
03. Business Checking Account
Business Checking Accounts are designed for businessmen and entrepreneurs only. Such accounts require higher minimum balance and they offer higher spending limits. Moreover the account holders can track and check all expenses of the month paid using the business checking account.
04. Rewards Checking Account
These checking accounts come with sign up bonus and/or higher interest rates. If you want to earn more interest on your average account balance, you should open a rewards checking account.
05. Student Checking Account
High School and College Students are also eligible to open checking accounts. The bank does not charge any maintenance fee for student checking accounts. Moreover the students don’t need to keep minimum balance in their checking account.
06. Free Checking Account
Checking Accounts offer many facilities and easy access to the account. But it also charges maintenance fees every month. In order to save your money, you should find a bank or credit union that offers free checking account service. Such checking accounts have low spending and withdrawal limits.
07. Online Checking Account (Online Only)
Standard Checking Account means you open an account by visiting nearby bank. Several Banks and Credit Unions provide online only checking account service. Such checking accounts have lower fees and limited/no access to visit bank branch. Customers can use Bank ATMs to withdraw money from their online checking accounts.
08. Premium Checking Account
Banks and Credit Unions provide extra services to premium checking account holders. These checking accounts have higher minimum balance and lower interest rates.
09. Senior Checking Account
This checking account is designed for senior citizens. Banks waive maintenance charges on senior checking accounts. Moreover, such checking account customers can draw free checks and no-fee money orders without any charges payable to bank.
10. Second Chance Checking Account
This checking account is a second chance for people with bad bank history. The customers can open a second chance checking account and maintain it properly to improve their financial credit/reputation. Such account holders have to pay monthly maintenance fee and may not get overdraft service from bank.
Documents Required to Open Checking Account
In order to open a checking account, you have to provide necessary documents to respective bank. If you want to open a joint checking account then you must provide valid documents of both account holders. Here we provide required document list for opening a checking account.
- Social Security Number (SSN) of Account Holder(s).
- A Valid Proof of Identification.
- Address Proof of Person/Business Organization.
- Other Documents as asked by the Bank/Credit Union.
How to Open a Checking Account
When you have all the above documents ready, you should visit your desired bank. Thereafter you need to get the checking account form and fill it up with your personal and other information. Finally submit the form with required documents to the bank executive to complete the procedure. If there is minimum balance criteria, you need to pay the same to the bank executive.
In case you want to open an online checking account then visit relevant bank’s website and follow the procedure given below:
- Go to your desired Credit Union or Bank’s Website.
- Find out “Checking Account” and select it.
- Click on “Online Checking Account” and Create your Login.
- Login with your Username, Password and select “Open Account” option.
- Provide your Social Security Number and other Identification details.
- Choose features, nominations, beneficiaries and other details.
- Submit all the details and deposit fund in your online checking account.
As the process gets over, you should note down your checking account number and relevant information.
Which Checking Account is Better: Online or Regular/Standard?
Many people believe that online checking accounts are not safe, but it’s not true at all. Online checking accounts are as safe and useful as standard checking accounts. The only difference is that you don’t have (or limited) access to your account from bank branch. So it depends on your perspective and need of using checking account at physical location or through internet only.
Thus, you can open a checking account to access your money at anytime and pay all your bills using its checks and check card.