Checking Account Basics

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What is a Debit Card?

Back

A debit card is a payment card that allows you to withdraw cash from your checking account or make electronic payments directly from your account.

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What is a Checking Account?

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A checking account is a type of bank account that allows you to easily withdraw money, pay bills, and make purchases.

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Who should be written on the 'Pay to the order of' line of a check?

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The name of the person or entity receiving the payment, for example, Cassie Porter.

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What does it mean to Deposit money into an account?

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To deposit means to enter money into a bank account, increasing the account balance.

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

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Start with the previous balance, add deposits, and subtract withdrawals and fees.

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What is a Withdrawal?

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A withdrawal is the action of taking money out of a bank account.

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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.

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What is the purpose of writing a check?

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A check is a written order directing a bank to pay a specific amount from the writer's account to the person or entity named on the check.

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What is Direct Deposit?

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Direct deposit is an electronic transfer of a payment directly from the payer's bank account to the recipient's bank account.

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What is the difference between a Checking Account and a Savings Account?

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A checking account is used for daily transactions, while a savings account is intended for saving money and earning interest.