Depending on the banking institution and account type, these rewards can include cash back, airline miles, and other bonuses. Rewards are a great way to get the most out of your account without changing your daily spending habits. A checking account holds your money until you’re ready to spend it. When the time comes to make a purchase or a withdrawal or to initiate a transfer from your checking account, you’re limited to the current balance in your account.

• This means that any transactions happening in the account must be authorized by the company owner or a person authorized by the owner.
• Instead, think about your financial situation, lifestyle and goals.
• These interest-bearing checking accounts typically pay lower rates than savings accounts, but if you’re willing and able to follow the requirements to the letter, you can find good options.
• Earning interest on checking accounts isn’t nearly as common as it is on savings accounts.
• Savings accounts typically earn an APY, though the rate varies by bank.
• If you need to regularly pay bills and make withdrawals, a checking account is a simple, cost-effective solution.

Your checking account will likely be where you what is checking accept deposits such as your paycheck and other funds. It’s also the account you’ll probably use to make regular cash withdrawals, pay bills, send money to others, or buy food at the grocery store. Checking and savings accounts are two of the most common types of bank accounts, but there are important differences between them. Savings accounts are designed to store money you don’t need for everyday expenses—and while you keep your money in the account, you can earn interest on your balance.

What is the main difference between a checking account and a savings account?

To open a business account, you’ll need to show documents proving your ownership of the business. Bank deposit accounts, such as checking and savings, may be subject to approval. Deposit products and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC.

In some cases, you might want to open a checking account with another person, either to share access to money, manage finances for another person, or help your kids learn to budget. A joint checking account is one that’s owned equally by two or more people, and most financial institutions offer them. No, a debit card is not a checking account, but it is a tool you can use to access the money in your checking account.

• We are not financial advisors and we recommend you consult with a financial professional before making any serious financial decisions.
• This is a one-time fee that you will be charged if you ever spend more than your checking account balance.
• Make your money work harder with a high-yield savings account—earn higher returns with easy access to your funds.
• Having a checking account gives you a secure place to hold your money.
• Although checks aren’t as popular as they used to be, many checking accounts still offer the ability to write physical checks.

Do You Have a Direct Deposit?

It’s faster and more secure than many other payment options and a popular way to receive paychecks. You can also use direct deposit for government benefits and tax refunds so you don’t have to worry about dealing with checks. Student checking accounts are geared toward high school and college students who may just be starting to manage their finances independently. These accounts often have minimal fees and don’t require minimum balances. Students under 18 who want to open a checking account need to have an adult co-owner. Banks and credit unions offer different kinds to meet the needs of various customers.

It’s designed for day-to-day transactions and offers convenient access to your money. Since checking accounts pay little or no interest, they’re typically not ideal places for holding large sums of money. Student checking accounts are designed for younger individuals, frequently offering no monthly maintenance fees or ATM fee reimbursements to support their financial journey. Senior checking accounts often provide benefits like free checks or discounted services for older account holders.

All information, including rates and fees, are accurate as of the date of publication and are updated as provided by our partners. Some of the offers on this page may not be available through our website. Make your money work harder with a high-yield savings account—earn higher returns with easy access to your funds.

For more information, please see a banker or visit chase.com/checking. You’ll typically need a Social Security number or ITIN, a government-issued photo ID, your address and contact information. Despite the name, check-writing is just one function of a checking account. Generally, you’ll need to provide documentation to prove your identity, Social Security number, and address.

It may come with a monthly fee, though you can usually get it waived by maintaining a minimum balance. This is a one-time fee that you will be charged if you ever spend more than your checking account balance. With Chase for Business you’ll receive guidance from a team of business professionals who specialize in helping improve cash flow, providing credit solutions, and managing payroll. Choose from business checking, business credit cards, merchant services or visit our business resource center. Checking and savings accounts are often lumped together, but they have key differences.

Checks made out to you can be deposited into your checking account, either by going to a bank branch or finding an ATM that lets you deposit checks. A joint checking account is similar to a typical checking account, but two people have full access to the funds. A stimulus check, on the other hand, is a direct payment to encourage spending and stimulate the economy by putting money directly into the consumers’ hands. We work hard to share thorough research and our honest experience with products and brands. Of course, personal finance is personal so one person’s experience may differ from someone else’s, and estimates based on past performance do not guarantee future results.

While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service. Primary useA checking account is typically used for money you’ll spend, whereas a savings account holds money you’re holding onto. There are often checking account fees for certain account-related services. Direct deposit is an electronic payment method that transfers money from a payer directly into the recipient’s bank account.