{"id":31581,"date":"2023-12-14T16:29:33","date_gmt":"2023-12-14T16:29:33","guid":{"rendered":"https:\/\/swoopfunding.com\/au\/?post_type=business-glossary&p=31581"},"modified":"2025-04-24T14:13:53","modified_gmt":"2025-04-24T14:13:53","slug":"checking-account","status":"publish","type":"business-glossary","link":"https:\/\/swoopfunding.com\/au\/business-glossary\/checking-account\/","title":{"rendered":"Checking account"},"content":{"rendered":"

Definition<\/h3>\n

A checking account is a financial account held at a bank or credit union that is designed for everyday transactions and easy access to funds. <\/span><\/p>\n

What is a checking account?<\/h3>\n

A checking account allows account holders to deposit money, make withdrawals, write checks, and conduct various electronic transactions. It serves as a central hub for managing day-to-day financial activities.<\/span><\/p>\n

Deposits and withdrawals:<\/span><\/p>\n

    \n
  1. Deposits: Account holders can deposit money into their checking accounts through various methods, such as cash, checks, direct deposits, or electronic transfers.<\/span><\/li>\n
  2. Withdrawals: Funds can be withdrawn from a checking account using methods such as checks, ATM withdrawals, electronic transfers, or debit card transactions.<\/span><\/li>\n<\/ol>\n

    Checking accounts typically include a checkbook, allowing account holders to write checks as a form of payment. Checks are written to specific payees and can be used for various transactions, including bill payments and purchases. Furthermore, many checking accounts come with a debit card, which can be used to make purchases, withdraw cash from ATMs, and conduct point-of-sale transactions. Debit card transactions are directly linked to the checking account balance.<\/span><\/p>\n

    Some checking accounts offer overdraft<\/a> protection, a service that helps prevent transactions from being declined if the account balance is insufficient. Overdraft protection may involve linking the checking account to a savings account<\/a> or a line of credit<\/a>.<\/span><\/p>\n

    While checking accounts traditionally do not offer high-interest rates compared to savings accounts or other investment options, some financial institutions provide interest-bearing checking accounts that offer modest interest<\/a> on the account balance.<\/span><\/p>\n

    Checking accounts often incorporate security features to protect against unauthorised transactions. Account holders are typically protected by fraud monitoring, and many banks offer zero-liability policies for unauthorised transactions.<\/span><\/p>\n

    Example of checking account<\/h3>\n

    John Doe opens a checking account at ABC Bank to manage his day-to-day financial transactions.<\/p>\n

      \n
    1. Initial deposit:<\/strong>\n
        \n
      • To activate the checking account, John makes an initial deposit of $500. This amount is the opening balance in his checking account.<\/li>\n<\/ul>\n<\/li>\n
      • Direct deposit:<\/strong>\n
          \n
        • John sets up direct deposit with his employer, so his monthly salary of $2,500 is directly credited to his checking account.<\/li>\n<\/ul>\n<\/li>\n
        • ATM withdrawals:<\/strong>\n
            \n
          • John occasionally withdraws cash from ATMs using his debit card when needed. The withdrawn amount is deducted from his checking account balance.<\/li>\n<\/ul>\n<\/li>\n
          • Online banking:<\/strong>\n
              \n
            • John uses online banking to check his account balance, review transactions, and transfer funds between his checking and savings accounts.<\/li>\n<\/ul>\n<\/li>\n
            • Overdraft protection:<\/strong>\n
                \n
              • To avoid overdrafts, John opts for overdraft protection linked to his savings account. If his checking account balance falls below a certain threshold, funds are automatically transferred from his savings account to cover the shortfall.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n","protected":false},"author":1,"template":"","class_list":["post-31581","business-glossary","type-business-glossary","status-publish","hentry"],"acf":[],"featured_image_urls_v2":{"full":"","thumbnail":"","medium":"","medium_large":"","large":"","1536x1536":"","2048x2048":"","image_blog":"","image_podcast":"","image_banking":"","image_blog_internal":"","image_blog_medium":"","image_single_banking":""},"post_excerpt_stackable_v2":"

                Definition A checking account is a financial account held at a bank or credit union that is designed for everyday transactions and easy access to funds. What is a checking account? A checking account allows account holders to deposit money, make withdrawals, write checks, and conduct various electronic transactions. It serves as a central hub for managing day-to-day financial activities. Deposits and withdrawals: Deposits: Account holders can deposit money into their checking accounts through various methods, such as cash, checks, direct deposits, or electronic transfers. Withdrawals: Funds can be withdrawn from a checking account using methods such as checks, ATM…<\/p>\n","category_list_v2":"","author_info_v2":{"name":"root","url":"https:\/\/swoopfunding.com\/au\/author\/root\/"},"comments_num_v2":"0 comments","_links":{"self":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/business-glossary\/31581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/business-glossary"}],"about":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/types\/business-glossary"}],"author":[{"embeddable":true,"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/users\/1"}],"wp:attachment":[{"href":"https:\/\/swoopfunding.com\/au\/wp-json\/wp\/v2\/media?parent=31581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}