How Does A Checking Account Work?
A checking account is a bank account that allows easy access to your money. You can access your money by writing a paper check, using a debit card with a PIN, or setting up an automatic transfer.
You must have enough money in your checking account to cover the amount of the check or charge from your debit card. If you don’t have enough money, this is known as NSF, “non-sufficient funds.” If you don’t have enough money, the bank may charge you fees in order to cover the NSF check. If you’re trying to pay by debit card, your card will be declined.
It is important to understand the terms of the agreement with your bank regarding your checking account. You should:
- Verify if there is a monthly fee.
- Ask if there is a minimum balance requirement.
- Determine if there are ATM or foreign transaction fees.
- Ask if you need to use your debit card a certain number of times to receive a benefit.
You will get a statement each month from your bank showing your banking activity. This will include all of your deposits and withdrawals, including checks, point-of-sale purchases, and cash withdrawals.