A checking account is a deposit account opened at 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 using 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 banks have traditionally used this service as loss leaders. Loss leader is a marketing term that revolves around offering a product below its market value in order to attract consumers. Once consumers are enticed with free or cheap 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 checking accounts have been developed to meet the needs of users. These can be student accounts, business accounts, and joint household accounts. Due to their liquidity, current accounts usually do not offer any interest.

Current accounts can easily be set up for private individuals in bank branches. For businesses, you may need to go through a specific process depending on banking regulations and government regulations. The checking account is one of the most practical solutions to keep 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 all bank customers worldwide. This account gives you the freedom and convenience to access your funds instantly with no additional fees except in some cases transaction fees.

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

Advantages & disadvantages of checking account
Although checking accounts in terms of liquidity are close to cash, it is considered that keeping your money in a bank and accessing it over your transactional account may reduce unnecessary spending. It is also a good alternative to cash in case of a robbery, wallet loss or other accidents. Instead of losing all your cash, your funds would safely be held in your bank account.

Advantages
Nowadays, it may be hard to imagine receiving your paychecks in cash, which include physical reception after depositing cash in your account. It is hard to imagine going and paying for your utilities and other bills. Checking accounts even allow you to set up regular payments for mortgage or other payments that occur on a regular basis easily.

Most of the banks also offer debit or credit cards tied to your transactional account, which allows you to debit funds from the account by going to your closest ATM instead of visiting the branch, standing in queues and paying transactional fees. In addition, credit and debit cards allow you to do online shopping, purchase plane tickets and rent a car. Your credit or debit card information can also be used as a personal identification method for different sites online.