Checking account

Checking account (demand account, transaction account) is the account that you need in everyday life for:

  • making or receiving payments
  • depositing cash - put money to the bank
  • withdrawing cash - take money out
  • etc.

In some countries, instead of checking account you can use a current account.

There are various ways to deposit money to checking account (not all these ways can be allowed in all countries):

  • depositing cash in coins and notes at a bank branch
  • depositing cash at a cashpoint (ATM) with or without card
  • sending a wire transfer from abroad
  • transfer money from another account
  • sending a check in the post or depositing a paycheck
  • paying money in electronically
  • etc.

Ways of accessing money vary too (not all can be allowed in all counties and all banks):

  • writing out a check (not allowed for many of counties for individuals)
  • taking cash from a cashpoint (ATM) using a card or even without card
  • buying goods using a card
  • set payment data in the appropriate companies for regular payments like rent payments, electricity bills, etc.
  • setting up a payment order, standing order or direct debit from one’s account.

The complete list of allowed operations depends on your bank, but usually this type of accounts is not used for savings and investment operations because usually banks propose checking accounts with little or no interest.

Two or more people can set up a checking account together and call it a joint account.

Often the checking account is accompanied by a check book but now it was more popular to use a debit card that the bank issues to you.

Some banks offer to open checking accounts for free but with monthly fees.


  • Some banks charge fees for closing an account. The goal of most banks is to attract consumers with free or low-cost checking accounts and then entice them to use more profitable features such as personal loans, mortgages and deposits.
  • Usually any operation with the account should be paid by bank fees. Some banks propose different conditions of low fees or even without fees (like 3-5 transfers per month or some fixed amount for the deposit account).
Olga Slipchenko