Difference between revisions of "Checking account"
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| − | A '''checking account''' or '''direct deposit account''' is an account held by a bank against which debits can be drawn on the customer's demand. The account is used to hold the customer's funds which they can access by a variety of means including direct withdrawal either from a teller or an [[ | + | A '''checking account''' or '''direct deposit account''' is an account held by a bank against which debits can be drawn on the customer's demand. The account is used to hold the customer's funds which they can access by a variety of means including direct withdrawal either from a teller or an [[automated teller machine]], use of an access check, use of a debit card using either a PIN or by authorization through the Visa or MasterCard network, Automated Clearing House (ACH) withdrawal, or wire transfer. |
| − | Checking accounts are regulated by the [[Federal Reserve]] through a variety of means. For example, Regulation | + | Commonly checking accounts do not pay interest, and when they do the amount earned is often very small in comparison to [[savings account]]s or a [[certificate of deposit]]. |
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| + | Checking accounts are regulated by the [[Federal Reserve]] through a variety of means. For example, Regulation CC governs the availability of deposited funds, and Regulation E governs a customer's rights to dispute an unauthorized or improperly posted transaction. | ||
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| + | [[Category:Finance]] | ||
Latest revision as of 21:23, April 6, 2019
A checking account or direct deposit account is an account held by a bank against which debits can be drawn on the customer's demand. The account is used to hold the customer's funds which they can access by a variety of means including direct withdrawal either from a teller or an automated teller machine, use of an access check, use of a debit card using either a PIN or by authorization through the Visa or MasterCard network, Automated Clearing House (ACH) withdrawal, or wire transfer.
Commonly checking accounts do not pay interest, and when they do the amount earned is often very small in comparison to savings accounts or a certificate of deposit.
Checking accounts are regulated by the Federal Reserve through a variety of means. For example, Regulation CC governs the availability of deposited funds, and Regulation E governs a customer's rights to dispute an unauthorized or improperly posted transaction.