A checking account differs from other bank accounts in that it often allows for numerous withdrawals and unlimited deposits, whereas savings accounts sometimes limit both. Checking accounts can include business accounts, student accounts and joint accounts along with many other types of accounts which offer similar features.
In exchange for the liquidity, checking accounts typically do not offer a high interest rate, but if held at a chartered banking institution will be FDIC guaranteed up to $100,000 per individual depositor.
A checking account may also be called a "demand account" or "transactional account".
Checking accounts are offered by most banking institutions for a minimal fee or no fee at all. Thanks to advances in electronic banking, many people can now use checking accounts to set up automatic payment of routine monthly expenses with a one-time setup.
For the large commercial banks, checking accounts are considered loss leaders because they have become highly commoditized (hence the low fees for their use). The goal of most banks is to entice the customer to use more profitable features such as personal loans, mortgages and certificates of deposit (CDs).
Because money held in checking accounts is so liquid, aggregate balances nationwide are used in the calculation of the M1 money supply.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
checking account — ➔ account * * * checking account UK US noun [C] US ► BANKING CURRENT ACCOUNT(Cf. ↑current account) … Financial and business terms
checking account — checking accounts N COUNT A checking account is a personal bank account which you can take money out of at any time using your cheque book or cash card. [AM] (in BRIT, usually use current account) … English dictionary
checking account — ☆ checking account n. a bank account against which the depositor can draw checks at any time, without presenting a bankbook … English World dictionary
checking account — n. US a current account at a bank. Etymology: CHECK(3) * * * noun, pl ⋯ counts [count] US : a bank account from which you can take money by writing checks called also (Brit) current account * * * ˈchecking account [checking account checking… … Useful english dictionary
checking account — UK / US noun [countable] Word forms checking account : singular checking account plural checking accounts American a current account … English dictionary
checking account — n. (AE) to balance a checking account (every month) * * * [ tʃekɪŋəˌkaʊnt] (AE) to balance a checking account (every month) … Combinatory dictionary
checking account — checking ac.count n AmE a bank account that you can take money out of at any time, and for which you are given checks to use to pay for things British Equivalent: current account →↑deposit account … Dictionary of contemporary English
checking account — Synonyms and related words: Swiss bank account, account, assets, balance, bank account, bank balance, bottom dollar, budget, cash reserves, charge account, command of money, credit account, exchequer, expense account, finances, fund, funds, kitty … Moby Thesaurus
checking account — check|ing ac|count [ tʃekıŋ ə,kaunt ] noun count AMERICAN a bank account in which you keep money that you can take whenever you want, using your CHECKBOOK or DEBIT CARD. British current account ─ compare SAVINGS ACCOUNT … Usage of the words and phrases in modern English
checking account — noun (C) AmE a bank account that you can take money out of at any time; current account BrE compare deposit account … Longman dictionary of contemporary English