Checking Account Basics

Front

What is a checking account?

Back

A checking account is a type of bank account that allows for deposits and withdrawals. It is used for everyday transactions and typically comes with a debit card and check-writing capabilities.

Front

What is the purpose of writing 'Pay to the order of' on a check?

Back

This line indicates who the check is being paid to, ensuring that the funds are directed to the correct recipient.

Front

What happens if you write a check for more than what is in your checking account?

Back

You may incur overdraft fees, as the account balance is insufficient to cover the amount of the check.

Front

Why is it important to use permanent ink when writing a check?

Back

Permanent ink prevents alterations or forgery, ensuring the integrity of the check.

Front

What is an overdraft fee?

Back

An overdraft fee is a charge that a bank imposes when a check or withdrawal exceeds the available balance in a checking account.

Front

What should you do if you realize you've written a check for the wrong amount?

Back

You should contact the recipient and request to void the check, then issue a new one with the correct amount.

Front

What is the difference between a checking account and a savings account?

Back

A checking account is designed for frequent transactions, while a savings account is intended for saving money and typically earns interest.

Front

What is a debit card?

Back

A debit card is a payment card that deducts money directly from a checking account to pay for a purchase.

Front

What is a check?

Back

A check is a written order directing a bank to pay a specific amount of money from a person's account to another person or entity.

Front

What does it mean to 'bounce' a check?

Back

A check 'bounces' when there are insufficient funds in the account to cover the amount, resulting in the check being returned unpaid.