What is a Checking Account?

Introduction to Finance

Finance Topics

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• ​What is a Checking Account​

• What is a Check?

• ​What is a Debit Card?

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What is a Checking Account?

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A checking account is a deposit account with a bank or other financial firm that allows the holder to make deposits and withdrawals.

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Checking accounts are:

• Very liquid, allowing for numerous deposits and withdrawals, as opposed to less-liquid savings or investment accounts.

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Multiple Select

What is a Checking Account? 

(Select all that apply)

• A Deposit Account

• Allows for deposits and withdrawls

• Money can be accessed by using a debit card

• Charges interest on your purchase

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What is a Check?

​Used at the time of purchase as the form of payment

• Piece of paper pre-printed with the account holder’s:

  • Name and address

  • Financial institution

  • Identification numbers

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What Is a Check?

A check is a signed paper document that instructs a bank to pay a person or place (like a store or a utility company) a specific amount of money from a specific checking account. Basically, it’s a way of transferring money from one place to another.

​Checks: Decide is it a PRO? or CON?

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Multiple Choice

A fee will be charged to the account holder

• PRO

• CON

Multiple Choice

Keeps a record of where money is spent

• PRO

• CON

Multiple Choice

Less need to carry large amounts of cash

• PRO

• CON

Multiple Choice

May harm future opportunities for credit

• PRO

• CON

Multiple Choice

‘Bounces’ due to non sufficient funds (NSF) or not enough money in the account

• PRO

• CON

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What is a Debit Card?

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Looks like a credit card. Electronically connected to a bank account. Money is automatically taken from the bank account when purchases are made. Requires a PIN (personal identification number)

​Debit Card: Decide is it a PRO? or CON?

Multiple Choice

Can lose track of balance if transactions are not entered

• PRO

• CON

Multiple Choice

Can carry less cash

• PRO

• CON

Multiple Choice

Convenient

Small

• PRO

• CON

Multiple Choice

Others can gain access to the account if the card is lost and PIN is known

• PRO

• CON

Multiple Choice

Less chance of overspending

• PRO

• CON