A checking account also referred to as a personal Checking account is the regular account you open in a bank to meet your monthly expenses. This account helps you manage your everyday expenses such as groceries, fuel, food, and other such things. Moreover, you can have your energy bills and house rent paid with this bank account.

For further details, stick with us till the end. It will hardly take 2 minutes. 

How Does It Work?

The principles of personal checking accounts are the same as any other account. The only difference is it doesn’t yield interest on your money. For most banks, you can have your account limit up to 250,000 dollars. However, the exact amount varies.

Apart from this, you can add money to this account using paychecks, gift cards, electronic transfers, etc. Similarly, you can take out your money via ATM, check, or debit card. Moreover, you can add an automatic bill payment to your checking account. 

Insurance You Get from Checking Account 

The best thing about this account is you will get the assurance of your money safety from the Federal Deposit Insurance Corporation (FDIC). As long as your credit is 250,000 dollars or less your credit is safe even if your bank fails in any way. However, if you open your checking account at the credit union, you can expect the same protection but not from FDIC, from NCUA (National Credit Union Association).

Mind that you have to pay a certain fee either monthly or yearly depending on your bank for your checking account. Also, checking accounts with high interest rates may demand specific requirements to score the high rates. They may ask you to make more transactions or maintain a high balance. 

Rewards you can earn from a Personal Checking Account

Although checking accounts don’t pay interest, they provide a reward system. It is based on a simple principle. The more you use the account, the more points you will get and then you can use those points to earn prizes like credit-back debit cards. These cards will return a percentage of your amount when you use them. 

Other rewards may include a special bonus of several hundred dollars. It will help you open a new checking account. But you need to fulfill certain specifications to get that bonus. These strategies vary as with banks. 

Checking Account Fees

Compared to other bank accounts where you generally don’t have to pay any kind of fees, with a checking account you need to pay the fees. This fee can be in the form of maintenance fees or fees for using an ATM other than your bank ATM. 

Most of these charges are compulsory, but you can avoid some in case you maintain your direct deposits to a certain number. 

Conclusion 

All in all, these are the few factors that you should know about a personal checking account. There are various types of these checking accounts which you can choose as per your needs. To gather more details, you can visit your local bank, or check the bank’s website.