Among the various types of accounts provided by financial institutions, checking account is the type that is most affordable by people as compared to other types of accounts. Other terms used for the same account are transactional account and current account. Such accounts offer low or no maintenance charges on the account and this is what makes it most suitable for people with a low income and even for students. However, some banks do charge clients with a fee for not maintaining the balance requirement and also for ATM use. Businessmen and investors choose a checking account so that they are not charged on their frequent transactions and can avail unlimited deposits and withdrawals.
Apart from the basic account there are other checking accounts offered by banks, financial institutions and loan agencies. Let us briefly discuss these. The Free Checking account comes without any charges on the maintenance of the account and there can be unlimited transactions. The Interest-bearing account is one that requires a certain minimum balance for account opening. Further the bank levies charges on this account if the account holder fails to maintain a minimum balance. Also, a very low rate of interest is paid on the balance kept in this account. A Joint-Checking account is an account shared by two people for the purpose of household expenses or for a partnership in some business. Such an account requires high balances and accountholders are charged if the required amount of balance is not maintained.
If you are a student or are in a job that requires being on the road all the time, then the only account that would suit you is the Express Checking Account.. This account has no monthly balance requirements nor does it charge any monthly fees from the client. Account holders can access their accounts through ATM, phone banking or through the Internet due to lack of time to visit the bank. The Life line current account is meant for low income group of people as a very low fee is charged on monthly basis. This account is actually a mandatory account implied by the state banks of some regions like Illinois, Massachusetts and New York. For students and senior citizens, banks offer the Senior/Student checking account which carries certain benefits like free checks, traveler’s checks, free ATM transactions, lower rates of loans and credit cards along with heavy discounts. The Money Market current account is targeted towards investors who have high amounts of savings and wish to earn profits on their funds. The account requires a high balance which investors can easily deposit and thus enjoy greater returns on their savings.
Holding a current account with a national bank is an ultimate experience. A variety of checking accounts at these banks can be opened with a reasonable balance. You get the first check book free with account opening along with entitlement to an ATM card with a very low annual fee. You can claim free bank statements and reference letters on your account and also get yourself up to six free pay orders per month. Besides, accountholders get an annual fee waiver for the first year on all kinds of credit cards at most of the banks. Online banking facility is also available free of cost on this type of checking account. People who maintain a hefty sum of balance automatically get an upgrade to the category of priority banking and thus become entitled to fully free banking services.
Businessmen and investors choose this account because banks usually charge heavily on frequent transactions and also have a limit on the number of transactions on a given day but the checking account is bounded by no such limitations. Investors can earn on their investments and double their savings while businesses can smoothly carry on their day to day transactions without worrying about any restriction on transactions. On the other hand, individuals choose this account to avoid charges and enjoy a low cost banking.
