Checking Accounts and How They Work

Understanding basic financial products like checking accounts can be a game changer. Why? Because checking accounts are the most common and helpful way to manage your daily finances—but they’re often underutilized, especially if you are new to banking. Keep reading as we cover what a checking account is, how it works, and how to open one. Let’s get started!

What Are Checking Accounts?

A checking account is a bank account designed for daily transactions. Think of it as home base for your money, where you can deposit earnings, pay bills, swipe your debit card, and manage your cash flow.

The name “checking account” comes from the concept of check-writing—the old-school method of transferring money by paper checks. These days, it’s all about electronic transactions, online banking, and mobile apps. But the name stuck!

Why should you have a checking account? Well, for starters...

• Convenience: Easily pay bills, shop, or transfer money.
• Security: Your money sits safely in a bank insured by the Federal Deposit Insurance Corporation (FDIC).
• Budgeting Made Simple: Track your spending via bank statements or mobile banking applications. 

What are the key features of checking accounts?

• Debit Cards: For immediate access to your funds.
• Online and Mobile Banking: Manage transactions from your phone or computer.
• Direct Deposit: Employers can directly deposit your paycheck into your account.
• Overdraft Alternatives: Avoid declined transactions by linking a backup savings account.

How Do Checking Accounts Work?

Checking accounts are straightforward, but knowing the basics can save you headaches later. Here’s a rundown of their basic functions:

• Depositing Money: Add funds to your account via direct deposit, mobile check deposit, ATM deposits, or bank transfers.
• Withdrawing Money: Access your money using a debit card, withdrawing cash at an ATM, writing checks, or electronic transfers.
• Making Payments: Pay rent, utilities, or shop online or in-store directly from your account.

When you swipe your debit card or set up a payment, your bank deducts that amount from your checking account. Keep an eye on your balance—no one likes overdraft fees (and luckily, you can sign up for overdraft protection alternatives at Academy Bank).

How Do I Open a Checking Account?

Checking accounts are the go-to banking accounts for, well, everyone. Here’s a quick guide to open a checking account:

1. Pick the Right Bank: Look at fees, accessibility (including ATMs), and additional perks like overdraft protection and card controls. Be sure to choose a FDIC-Insured bank for added security.
2. Bring Your Paperwork: You'll need a government-issued ID, your Social Security number (or Taxpayer Identification Number), and proof of address. For those, opening a student checking account, you will also need proof of enrollment in school. Think of it as showing your credentials to join the financial club!
3. Submit Your Application: Apply online or visit a branch (and maybe enjoy some free pens while you're there). Share some basic info like your name, address, and contact details.
4. Kickstart Your Account with a Deposit: Some banks ask for a small deposit to activate your account. This is your first step to making the account yours.
5. Set Up Online Banking: Welcome to the digital age. Get your account online and connect it to the bank’s mobile app for easy transfers, budgeting tools, and even payment reminders.
6. Order a Debit Card and Checks: If your bank hasn’t already taken care of this, now’s the time to request the tools you need! Your shiny new debit card will be your best friend for everyday purchases. And yes, checks are still useful—for rent and wedding gifts at least. (If you need help balancing a checkbook, we suggest using our Balance Checkbook Calculator).
7. Manage Money Like a Pro: Activate your card, set up direct deposit if needed, and enjoy the convenience of managing your money your way.

Finding the Best Checking Account at Academy Bank

Whether you’re splitting rent, paying subscriptions, or grabbing coffee with friends, managing money is a daily necessity. A checking account offers the financial flexibility and control you need to manage your finances easily.

Ready to open a checking account at Academy Bank? We offer a wide range of checking account options:

• Simply Free Checking: Straightforward and hassle-free. This free checking account has no monthly fees or minimum balances.
• Select Rewards Checking: This account goes beyond the norm with a great lineup of bonuses and extra perks.
• Elite Investment Checking: Keeps your money accessible while still earning interest, increasing the overall return on your account balance. In other words, your money works harder for you.
• Student Checking: This account offers a simple and cost-effective way for college students to manage their money. Plus, it comes with no monthly service charge if you enroll in Digital Banking and eStatements.
• Business Checking: Set up your company for financial success with our 4 business checking account options.

Academy Bank offers something for everyone. Get started today and see how the best checking account can simplify your life.

Compare Personal Checking Accounts or Compare Business Checking Accounts.