Checking Account A demand deposit account, withdrawals from which may be made by a written, negotiable instrument.

Features of Checking account

1. Quick, convenient and, frequent-access to the money. 2. Checks are used to withdraw money, pay bills, purchasing, transfer money to another accounts and many other common usage. 3. Some banks pay interest while many do not. 4. Institutions may impose fees on checking accounts, besides a charge for the checks ordered.

Any combination of the following three ways can be used by the banks: 1. Flat fee regardless of the balance maintained or number of transactions. 2. Additional fee if average balance goes down below a specified amount. 3. A fee for every transaction conducted.

Checkable deposits includes demand deposits, automatic transfer service account, Negotiable Order of Withdrawal account, and other deposits on which a check may be drawn.

See also

• Money supply

External links

• Data on OCD Sweep Account Programs from the Federal Reserve Bank of St Louis

Banking terms and equipment