The Basics of Checking Accounts
It's a place to keep your money where it's easy to access. Checking accounts are considered liquid - meaning the money in your account is readily available to you. They're also versatile - you can use your checking account in lots of different ways, like getting cash with a debit card at an ATM or making online payments.
Checking accounts get their name from"checks," which are a paper-based way to pay for goods and services. When you write a dollar amount on a check, it's linked to money in your checking account. Once that check is deposited or cashed, the money comes out of that account.
Sometimes checks can take awhile to process, so the transaction won't necessarily appear on your account right away. This can also happen if you write a check to someone and that person doesn't deposit it right away. So be careful not to spend that money on something else while you wait for the check to "clear." Always make sure you have enough money in your account to cover the amount you write on a check - and keep track of the checks that haven't cleared yet.
It's a place to keep your money where it's easy to access. Checking accounts are considered liquid - meaning the money in your account is readily available to you. They're also versatile - you can use your checking account in lots of different ways, like getting cash with a debit card at an ATM or making online payments.
Checking accounts get their name from"checks," which are a paper-based way to pay for goods and services. When you write a dollar amount on a check, it's linked to money in your checking account. Once that check is deposited or cashed, the money comes out of that account.
Sometimes checks can take awhile to process, so the transaction won't necessarily appear on your account right away. This can also happen if you write a check to someone and that person doesn't deposit it right away. So be careful not to spend that money on something else while you wait for the check to "clear." Always make sure you have enough money in your account to cover the amount you write on a check - and keep track of the checks that haven't cleared yet.