T
he following article compares a checking account to other bank accounts, looks at the requiremetns to open a checking account, the minimum balance needed and then the pros and cons of having a checking account.
Other bank accounts differ from a checking account in that a checking account most of the time allows for numerous withdrawal of money and unlimited deposits unlike other savings account which limit the two.Checking accounts include joint account , student accounts and business accounts among others. Checking accounts do not have exhorbitant interest rates but are reasonably friendly to customers.
The banking requirements
The banking requirements for opening a checking account include the following and this can easily be done online:
. A persons social security number
. The persons current area of residence.
. A valid email address.
. Individuals account number or debit card
A minimum amount of money is kept into the opened checking account and an individual can deposit any amount of money so long as it does not go below the minimum required by the bank. The application is then processed within 1-2 business days and the person is notified through email or a letter is send informing him or her that the account has been approved.
Pros and Cons
Checking accounts have their pros and cons. One of the advantage of owning a checking account is that it is safe and convinient. This is because it eliminates the need to carry cash everywhere a person goes. By convinience it means that a person does not have to rush to a bank to make a withdrawal but instead just needs to write a check which are easily accepted by many businesses.
Checking accounts give a customer a debit card which is very convinient. Debit cards are used to pay for their necessities they once wrote checks for. Debit cards are given because many businesses are beginning to decline checks presented to them.
Checking account have their limitations also. Most checking accounts do not give their customers any interest for the money deposited unlike some other insititutons. The minimum balance required for a checking account is also a big downfall for if the balance falls below the required amount charges apply. A person should check their balance keenly for amounts overdrawn attract steep charges.
