What is a checking account?

An interest-bearing checking account works like a traditional one but also earns interest. Rates aren’t typically as high as a savings account, CD or money market, but it’s better than not earning anything. If you need to pay your friends or family, many checking accounts feature a peer-to-peer transfer service, such as Zelle, that you can use from your smartphone or computer.

• Repeatedly overdrawing your checking account or failing to pay overdraft fees could result in your account being closed and being denied a checking account in the future.
• Checking accounts are designed for everyday transactions, offering features like check writing and ATM/debit cards.
• Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
• Yes, you can switch banks and transfer your checking account to a new one.
• Moreover, most checking accounts now offer online and mobile banking features, enabling users to manage their finances digitally.

Electronic transfers are a key aspect of modern checking accounts. Better yet, you may just consider opening a checking account with a bank that feels the same way about fees as the rest of us. Current Bank, an online-only bank you access using a mobile app, is one such example. A checking account can help you streamline your money management, making it easy to pay bills, make withdrawals, and transfer funds.

What Are the Benefits of a Checking Account?

Some checking accounts come with monthly fees, which you can usually avoid by maintaining a minimum balance. You can deposit money in your checking account at an ATM or receive your paycheck by direct deposit. You can also withdraw cash from your account using an ATM, or use your debit card to pay for products and services with the money in your checking account.

A checking account is a deposit account at a bank or credit union that allows you to deposit and withdraw money easily and frequently. It’s designed for the money you intend to spend on day-to-day needs, rather than for long-term savings like a savings account or a certificate of deposit (CD). Most banks and credit unions offer at least a few types of checking accounts, though many won’t offer all of these. Zelle® is intended for payments to recipients you know and trust and is not intended for the purchase of goods from retailers, online marketplaces or through social media posts.

If you prefer completely online banking, compare SoFi vs. Discover checking accounts. Anyone who makes or receives payments can benefit from having a checking account. 5.00%Annual Percentage Yield (APY) is accurate as of June 17th, 2025. Checking accounts can offer different features and benefits, and there can be a lot of overlap between different types of checking accounts. Consider how you plan to use the account, and ask yourself a few key questions to help with choosing the right checking account type for you. Keeping cash in your wallet or even at your home can be unsafe, since you likely won’t have a way to get it back if it’s stolen.

Who is getting inflation checks?

• To avoid such fees, choose a bank that offers plenty of its own ATMs, one that belongs to a large ATM network or one that reimburses you ATM fees.
• Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer.
• Checking accounts plays a pivotal role in daily financial transactions.
• Check out Investopedia’s list of the best high-yield checking accounts, which we update continually as offers change.
• Unlike a credit card, which allows you to spend against a credit limit and go into debt, a checking account only lets you use the money you already have.
• There were three prior stimulus checks tied to COVID-era stimulus programs, the third and last of which had an April 15, 2025 deadline to claim.

All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners. Some of the offers on this page may not be available what is checking through our website. Make your money work harder with a high-yield savings account—earn higher returns with easy access to your funds.

You just authorize the vendor, such as your credit card company, to withdraw the bill total from your checking account on a set date each month. The money comes straight out of your account to make your payment automatically. After an extended period of time, your financial institution may close your account, but that usually only happens if there’s been no activity for three to five years. A checking account is a bank account you can deposit money into and withdraw funds from.

While many checking accounts are free or have low fees, there are some common fees to be aware of. You may be able to waive this fee by meeting certain requirements, like maintaining a minimum balance or setting up direct deposit. A checking account is a great choice for your everyday banking needs, such as receiving a paycheck and shopping with a debit card.

Senior accounts often come with perks such as unlimited check writing, no monthly maintenance fees or minimum balance requirements and discounts on other banking services such as safe deposit boxes. Many modern checking accounts offer debit cards, mobile apps, an ATM network, and online money transfer options. Some banks may also provide paper checks to their checking account customers, which can be used to make purchases or to give money to people and organizations. For most consumers, checking accounts are a crucial aspect of managing their daily finances and building a solid financial foundation.

There has been no official confirmation from Congress or the IRS to support these claims and any such news should be taken with caution as it could be misinformation or attempted fraud. If you are wondering about a previous stimulus check or waiting on a tax refund from the IRS, here’s and update on how to check status, and what to know about the new American Worker Rebate Act of 2025. The revenue these partnerships generate gives us the opportunity to pay our great team of writers for their work, as well as continue to improve the website and its content. We make money from affiliate relationships with companies that we personally believe in.

You will generally need a government-issued identification, such as a driver’s license, state ID card, or passport, to confirm your identity. Proof of address, such as a utility bill, rental agreement, or mortgage statement, is usually requested to establish residency. Funds in a checking account are typically insured up to a certain limit by government agencies like the FDIC in the United States. This means that even if a financial institution fails, the money in your checking account is protected. For example, one can open a commercial or business account, a joint account, or a student account.

Explore Checking Options at PNC Bank

Your checking account will likely be where you accept deposits such as your paycheck and other funds. It’s also the account you’ll probably use to make regular cash withdrawals, pay bills, send money to others, or buy food at the grocery store. Checking and savings accounts are two of the most common types of bank accounts, but there are important differences between them. Savings accounts are designed to store money you don’t need for everyday expenses—and while you keep your money in the account, you can earn interest on your balance.

If you plan to use this service frequently, review the account’s fee schedule before signing up. Banks usually have their own free ATMs or are part of a network of fee-free ATMs. If you use an ATM that’s outside of the bank’s network, you’ll likely have to pay a fee each time.

As such, our advice may not apply directly to your individual situation. We are not financial advisors and we recommend you consult with a financial professional before making any serious financial decisions. So, if there is ever a bank failure, you can trust that by putting your money in an FDIC-insured checking account, you will get it back.