What is a checking account? A checking account is a type of financial account that allows you to withdraw and deposit money with ease. The money in your account can be accessed by electronic transfers, debit cards, ATMs and checks, which is why they are also called transactional, spending or demand accounts. Checking accounts are more liquid than many other bank accounts, as they allow multiple withdrawals and unlimited deposits. The purpose of a checking account is to hold your money in a secure place where you can spend it as you need it. Although some checking accounts have high interest rates, they generally have lower interest rates than savings accounts. Unlike checking accounts, savings accounts may have limits on the number of withdrawals and are meant to hold your money for the long term.
