Understanding Checking Accounts

Front

What is a checking account?

Back

A checking account is a type of bank account that allows for deposits and withdrawals, providing easy access to funds for everyday transactions.

Front

What is a checking account debit?

Back

A checking account debit is a transaction that decreases the balance in the account, such as a withdrawal or a purchase.

Front

What is a checking account credit?

Back

A checking account credit is a transaction that increases the balance in the account, such as a deposit or a direct deposit.

Front

How do you calculate the total deposit in a checking account?

Back

To calculate the total deposit, add all deposits made to the account and subtract any cash taken out.

Front

If you have a balance of $500 and deposit $300, what is your new balance?

Back

$800

Front

What is a monthly service fee in a checking account?

Back

A monthly service fee is a charge by the bank for maintaining the checking account, which reduces the account balance.

Front

How does a direct deposit affect a checking account balance?

Back

A direct deposit increases the checking account balance by the amount of the deposit.

Front

What is the purpose of writing a check?

Back

Writing a check allows the account holder to pay someone directly from their checking account.

Front

What happens when a check is deposited?

Back

When a check is deposited, the amount of the check is added to the account balance.

Front

What is the significance of maintaining a minimum balance in a checking account?

Back

Maintaining a minimum balance may help avoid monthly service fees and ensure account privileges.