Glossary of Terms

Checking Account 2019-07-04 08:00:00

Checking Account

A checking account is a liquid type of account individuals and businesses use to deposit and withdraw funds at a financial institution or bank. Consumers and businesses can access funds held in checking accounts via checks, automated teller machines and electronic debits. Banks allow unlimited withdrawals and deposits on checking accounts.

Checking accounts typically do not offer high interest rates because of the high level of liquidity it offers to customers. Funds held in a checking account at a chartered banking institution regulated are guaranteed by the Federal Deposit Insurance Corporation (FDIC) up to $250,0000 per individual depositor