Everyone should have at least one bank account as it helps them comprehend the value of money. Children too can have bank accounts from an early age. Once they turn 18, they must change their account to adult checking accounts which would exclude parental supervision. Every teenager and young, adults should have his or her own checking account as it teaches them how money functions. A college student might find a checking bank account extremely useful in their busy life. There are different types of bank accounts but the checking accounts are the ones that are in daily use.
What is a checking account?
A checking account is a bank account that lets you use a debit card, credit card and checks to withdraw money from the account. It is an account where you primarily keep money in order to take them out. It is not like a savings account where you should put a good chunk of capital and let it sit for a while. A savings account gives you dividend while checking account does not. So, the objective of checking account is to deposit and withdraw cash. Opening a checking bank account is simple and effortless. It takes a few minutes to open a new checking account.
The differences between checking and savings accounts:
There are a few distinctions between the two accounts. Let us examine that here briefly. A checking account enables you to write checks while the savings account does not. The savings account is for essentially long term investments. Checking accounts let you issue a debit card, credit card and draw checks from your bank account, while the savings account does not. Checking accounts can be free or there might be a monthly fee to keep your account active but most of the savings accounts are free and they give you a rate of interests on your money. It is important to note that a checking account can be linked with any savings account that you might have.
Importance of a checking account:
As mentioned before, everyone should have a checking account. It assists in keeping the financial matter in order. Students can pay their college tuition fee from the checking account. They can also go to various online portals to buy books which are not available in the market. When they do online shopping they will make use of the checking account. Whenever one orders something online, they need to pay via debit or credit cards. The world has progressed to a digital platform, there are money exchanging portals such as Amazon Pay and Google pay. This online money exchanging outlets are linked with a checking account. So, it is quite imperative in today’s world to have a checking account to your name.
When you are young, it is expected that you might not have a lot of cash with you at your disposal. But there might be things that you need for your growth in life. Checking account will let you have a credit card which in turn will give you the freedom of purchasing items beyond your reach. Of course in due time you need to fill the gap and reimburse the money in the bank. Having a bank account with a good credit score can also help you get the loan you need to start your own start-up business.
It is therefore advisable that everyone should have a checking account to their name in the bank. It will certainly make one’s life smoother.
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