A checking account is a deposit account opened with a bank that allows numerous withdrawals and unlimited deposits. Current account is the most liquid account and can be easily accessed at any time through ATM, check, online banking, credit or debit card. Due to its characteristics, the current account is also known as a sight or transaction account.

Many financial institutions offer checking accounts with very low monthly or annual fees and traditionally banks have used this service as a loss leader. The loss leader is a marketing term that involves offering a product below its market value to attract consumers. When consumers are targeted with free or low-cost checking accounts, banks offer them more profitable products such as mortgages, personal loans, life insurance investments or retirement funds.

Checking account features
To meet the needs of users, different types of checking accounts have been developed. These can be student accounts, business accounts and joint household accounts. Due to their liquidity, checking accounts generally do not offer any interest income.

Current accounts can be easily set up for private individuals in bank branches. Companies may be required to go through a specific procedure depending on banking rules and government regulations. The current account is one of the most practical solutions to have your cash available for all transactions, e.g. For example, to pay your bills, purchase goods online and pay with a credit or debit card in a store. The sight account is the simplest banking service and is used by almost every bank customer in the world. This account gives you the freedom and convenience of accessing your money instantly and at no additional cost, except for transaction fees in some cases.

Some banks offer checking accounts with a specific credit limit that you can use in an emergency. If this is the case with your transaction account, you can rest assured that you will have access to additional cash at any time. In the meantime, you should be more careful not to exceed your balance without good reason. Typically, this short-term loan comes with high interest rates. For some people who like to spend as much cash as possible, a checking account with a line of credit may not be the best option.

Advantages and disadvantages of checking accounts
Although checking accounts are comparable to cash in terms of liquidity, it is believed that keeping your money in a bank and accessing it through your transaction account can reduce unnecessary expenses. It is also a good alternative to cash in the event of a robbery, loss of wallet or other accidents. Instead of losing all your cash, your money is kept safe in your bank account.

Advantages
These days, it can be hard to imagine receiving your paychecks in cash, which includes physically receiving them after depositing cash into your account. It's hard to imagine having to pay your utilities and other bills. Checking accounts even make it easy to set up regular payments for mortgages or other recurring payments.

Most banks also offer debit or credit cards tied to your transaction account. This allows you to withdraw money from the account by going to the nearest ATM instead of visiting the branch, standing in queues and paying transaction fees. Additionally, you can use credit and debit cards to shop online, buy airline tickets, and rent a car. Your credit or debit card information may also be used as a personal identification method for various online sites.