Checking Accounts

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What is a checking account?

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A checking account is a type of bank account that allows for deposits and withdrawals. It is used for everyday transactions, such as paying bills and making purchases.

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What is a check register?

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A check register is a record maintained by the account holder to track deposits, withdrawals, and the current balance of a checking account.

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What does it mean for a check to clear?

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When a check clears, it means that the funds have been transferred from the check writer's account to the recipient's account, and the transaction is complete.

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What is an overdraft fee?

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An overdraft fee is a charge that a bank imposes when a customer withdraws more money than is available in their checking account.

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How do you calculate the current balance of a checking account?

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To calculate the current balance, start with the previous balance, add any deposits, and subtract any withdrawals or fees.

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What is a monthly service fee?

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A monthly service fee is a charge that banks may impose for maintaining a checking account, often based on account activity or balance.

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What is a debit card?

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

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What is a bank statement?

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A bank statement is a summary of all transactions in a checking account over a specific period, usually monthly.

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What is the purpose of writing checks?

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Writing checks allows individuals to make payments without using cash or electronic transfers, providing a paper trail of transactions.

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What is a direct deposit?

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Direct deposit is an electronic transfer of funds directly into a bank account, often used for payroll payments.