A checking account is a deposit account opened with a bank that allows numerous withdrawals and unlimited deposits. The checking account is the most liquid account and can be easily accessed at any time through ATMs, checks, online banking, credit or debit cards. Due to its properties, the checking account is also known as a sight or transaction account.

Many financial institutions offer checking accounts for very low monthly or yearly fees and traditionally banks use this service as a loss leader. Loss leader is a marketing term that encompasses offering a product below its market value in order to attract consumers. When consumers are approached with free or low-cost checking accounts, banks offer them more profitable products such as mortgages, personal loans, life insurance investments, or retirement funds.

Checking account features
Various types of current accounts have been developed to meet the needs of users. These can be student accounts, business accounts, and joint accounts for households. Due to the liquidity, current accounts usually do not offer any interest income.

Current accounts can be easily set up for private individuals in bank branches. Businesses may be required to go through a specific process depending on banking rules and government regulations. The current account is one of the most practical solutions to have your cash available for all transactions, e.g. For example, to pay your bills, buy goods online, and pay with a credit or debit card in a store. The current account is the simplest banking service and is used by almost every bank customer in the world. This account gives you the freedom and convenience to access your funds instantly at no additional cost, except for transaction fees in some cases.

Some banks offer checking accounts with a certain credit limit that you can use in an emergency. If this is the case with your transactional account, you can rest assured that you will have access to extra cash at any time. Meanwhile, you should be more careful not to exceed your balance without some important reason. Typically, this short-term loan is associated with high interest rates. For some people who like to spend as much cash as possible, a checking account with a line of credit may not be the best option.