Definition of Checking Account

Within the banking world, the client You can perform various actions that obviously have to do with the movement and money or capital transactions. One of the most common and accessible ways that a customer of a Bank You can access the current account which, together with the savings account, is one of the most used worldwide by customers of these institutions. But what is a checking account?

Both savings banks and checking accounts are artificial or non-existent spaces that the bank creates for its clients so that the notion of possession of a certain capital exists. Thus, that money is not that it is in a concrete way in the bank but that the entity acknowledges that the individual or individual who owns one of those two accounts has a contract with the bank and it must deliver the money when the individual requests it. In this way, banks ensure that they maintain clients and have capital permanently.

In the case of the current account, we are talking about a type of contract that entails benefits for both parties. The client receives an account in his name with which he can carry out various movements or transactions banking: deposit money, withdraw money (if you have it), pay for services, make transfers, etc. One of the main differences between a checking account and a savings account is that the checking account allows you to use Checks that can be issued by the bank in the name of the account owner so that he can carry out transactions with them in a manner safe.

On the other hand, the checking account also allows the individual to make expenses with credit cards. debit or credit even when there is no capital available in the account. This is so since the Username you can establish with the bank a credit limit that will give you Liberty to make more expenses that will be initially covered by the bank but then must be paid in the future by the client.