Learn of the different checking accounts that banks hold for their customers and of their various features and benefits.
The Different Checking Accounts
When it comes to check book accounts, many banks open different options. It is important to know about the different types of checking accounts available. A person should be well aware of the features of the account before he opens one with the bank. Apart from the basic checking, some banks may offer rewards checking or premier checking. One of the most important things that everyone needs to know is the account requirements, such as minimum balance requirement and monthly maintenance fee.
If he is unable to hold a minimum balance then he should be careful about it. If he is negligent about minimum balance then he would end up paying the bank money in lieu of low account balance. It is also important to know about the overdraft protection offered by the bank. Additionally, banks seldom pay interest on these as they do on savings accounts. There are various check book accounts that banks operate for their customers as follows:
- Business Checking Accounts
- Personal Checking Accounts
- Online Checking Accounts
- Small Business Checking Accounts
- Student Checking Accounts
Bank accounts are the best systems known to help business manage their funds. Companies can use them to track money owed to them as well as to their creditors, and even the employees’ payroll. One such account is a business account. This is an account which acts as the backbone of every business. It is from this checking account that the business deducts its employees’ payroll and pays the bills. They even deposits the sales the business makes.
It is also important to note that this account is the first relationship every business makes with a bank. As such, proper maintenance of a checking account by can go a long way in forging a beneficial relationship with banks. For instance, a well maintained account can help a business secure funding for expanding its business. Money held in this account is very liquid and can be accessed via automated cash machines, checks, electronic debits and so on. There are several banks including Sun Trust where you can open one such checking account.
Personal Checking Account, Individual or Joint
A traditional checking account is basically a bank account opened in the name of an individual, or shared by two or more people. Any person who is a member on this account can easily withdraw any amount of money from it or deposit to it. These particular bank accounts are usually shared between business partners or close family members. People open these accounts at Toronto Dominion Bank and other banks.
Most often, this kind of an account is common when two or more people establish a joint business. It happens for example when married couples commingle their funds. In some cases, these accounts can be a good option for a child and parent, or for those partners who don’t have access to partnership or marriage rights under the country/state law.
Under such situations, each member is entitled to all rights to their joint account, including funds withdrawal. In addition, should one or more partners start bouncing checks, or have unmet credit obligations, the full amount in this account could be accessible – though certain requirements must be met.
Additionally, this can be a great way of consolidating funds and managing household expenses. It is not however the best choice for every individual. Its therefore important to analyze your personal situation to determine if it’s a good option for you.
Online Checking Account
For you to find it easy while managing your finance, you should open one of these checking accounts. This is a personal account that will enable you to access banking services from wherever you may be. You can use your mobile phone or internet connection for you to carry out different forms of transaction. Just like a checking account that you can open in your bank, online accounts will enable you carry out different forms of transactions without going to the bank physically.
In case you will like to pay bills, you will easily achieve this by paying them online with an online account. You can also withdraw cash or carry out any other transaction at ATMs. The accounts are very helpful for those who have busy schedules. Some banks allow transactions by mobile banking. Instead of going to the bank anytime you will like to access banking services, with online accounts you can just carry out the transaction while you are in your office or home. This type of bank account will allow for direct deposit, mobile banking and debit cards. Capital One is one of the banks where you can open your checking account.
Small Business Account
From founders of start-up companies to the self-employed workers, owners of businesses have many tasks to perform. In addition to being manager, production worker and salesperson, business owners are also bookkeepers, managing their finances without accounting staffs. Entrepreneurs who are looking for ways to find order in their business expenses and revenue, the answer is with this type of checking accounts.
This type of checking account is an entrepreneurs best friend during tax season. If the weight of signing debit card receipts, mailing checks and making deposits is becoming too heavy, such an account has the option of delegating some daily tasks to the trusted employees. Where a small enterprise can only accept check and cash payments, the customers may be discouraged. One reason is the lack of ability to use the debit or credit cards in their wallets. Fortunately, with a this checking account a company is able to process credit and debit card sales. You may want to check out Bank of America for one such checking account.
Student Checking Acct.
There are several benefits to opening a student account. You should not rush to open an account without knowing its benefits. Since you do not have any source of regular income, you have to ensure that you open a checking account. This will allow your balance to go low without penalties. You can choose an account that requires an opening balance but will not require you to maintain a minimum amount of money in your account. You should also find a student centered account that does not have a monthly fee and that offers a free debit card. Students open these at Chase and other banks.
When you open accounts in a given financial institution, there is a very high likelihood that you are going to be a customer your whole life. That is why many financial institutions offer incentives to encourage people to open these accounts.