Learn What a Checking Account Is and How Does It Work?

A checking account is a type of deposit account that can be created at a bank or credit union and allows you to deposit and withdraw money rapidly. This is how they function.

 
Checking Account

What exactly is a checking account, and how does it function?

A checking account is a type of deposit account that can be created at a bank or credit union and allows you to deposit and withdraw money rapidly. This is how they function.

Checking accounts are essential in many facets of life, from getting your paycheck to moving money to someone else. According to the Federal Reserve’s report on the economic well-being of U.S. households from May 2019 to May 2020, over eight in ten (79%) U.S. people 18 and older have a bank account, such as a checking account.

Checking accounts at a bank or credit union provides the quickest and easiest access to your money from any type of bank account. Below explains how checking accounts function, what fees to expect, how they compare to savings accounts, and how to start a checking account.

What is a checking account?

A checking account is a bank account that allows you to deposit and withdraw funds for everyday transactions. This could entail depositing a check, withdrawing cash with a debit card, or setting up direct deposit for your paychecks.