What is a checking account?

A checking account is a bank account designed for everyday transactions. When you deposit money into a checking account, you can use it to pay bills online, withdraw cash from ATMs, make purchases using a debit card and write checks.

Do checking accounts earn interest?

Some checking accounts do offer interest, although it’s typically not as much as savings accounts. In many cases, these interest-bearing checking accounts require a higher account balance or other conditions to qualify for interest earnings.

How much money should I keep in a checking account?

Your checking account balance should match your spending habits. If you frequently use your debit card or write many checks, you might need to keep several thousand dollars in your account. It’s also smart to have enough to cover one to two months’ worth of expenses to avoid overdraft fees if you make a transaction without enough funds.

Are checking accounts safe?

Yes, checking accounts are generally safe. They’re typically insured by the FDIC or NCUA up to $250,000 per depositor per insured bank to protect your money in case the bank fails. That said, it’s still a good idea to keep an eye on your account activity and safeguard your account information for added security.

Can I open a checking account if I have bad credit?

Having bad credit typically won’t prevent you from opening a checking account. While some banks may check your banking history, many don’t require a credit check upfront. If you face rejection, consider exploring second chance checking accounts . These accounts offer an opportunity to manage your finances and rebuild your banking history.