Page 31 - Book4E

CHAPTER 6
Checking Accounts
A checking account is a good place to keep the money that you don’t expect to have in the bank for very long. It is where you will keep the money that will be used to pay bills and other daily living expenses. Once you have developed your monthly budget, you will have a good idea of how much money should be deposited in your checking account each month.
You will pay your bills and other expenditures with this money by writing a check. The bank transfers the money from your checking account into the account of the person or company you are paying when the check you have written is presented at your financial institution.
There are several different types of checking accounts, and the financial institution you choose may offer many of them.
• Accounts that cost nothing to open and charge no service fee: These accounts are hard to find and are sometimes used to promote the opening of a new bank or credit union. If your paycheck goes into your account through a direct deposit from your employer, some banks charge you no service fees.
• Accounts that charge no fees if you maintain a minimum balance: Some institutions require you to open a savings account in addition to the checking account and maintain
a minimum balance in the savings account.
• Accounts that charge a service fee: This fee may be charged per month, per check, or sometimes both.
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