One of the biggest financial events that you can ever experience is opening your first checking and savings accounts. Just ask Patriot Bank. Today, most people — including financial experts — consider these basic financial implements.
It’s important that you learn more about these bank accounts and review all your options when it comes to the process of opening a checking account. This way, you can enter the banking world more knowledgeable — not just regarding bank account types, but also regarding which institutions you best work with.
Checking accounts overview
Checking accounts offer a convenient way to manage your financial responsibilities, particularly when it comes to paying your bills on time. Like a savings account, it’s also a form of deposit account that you can withdraw money from. You can access these liquid accounts through checks, electronic debit transactions, and automated teller machines (ATMs), among other methods.
Differences and advantages
The main difference between this and a savings account is that you can perform multiple withdrawals and unrestricted deposits. Savings accounts, in most cases, only allow account holders a limited number of withdrawals — and amount — on a daily basis.
The key benefits
With a checking account, you can enjoy the convenience of accessing your funds through many ways, including the processes mentioned above. Also, you can use debit cards and checks to make purchases aside from cash.
For many employees, checking accounts provide them with an easy and convenient method for direct deposit, seeing as their employer can automatically transfer payroll amounts into their own checking account.
Furthermore, the Federal Deposit Insurance Corporation (FDIC) insures the majority of US checking accounts, assuring account holders that their banks safely and securely stores their money.
In a nutshell, a checking account is a key player in proper financial management, so long as you have good money management practices.