For deposit and withdrawal of money in a bank or financial institution, there is a deposit account called a checking account. Its’ benefit is its liquidity, it allows as much deposit and withdrawal to take place, unlike less liquid accounts. It is also known as the demand account or withdrawal account for as much withdrawal and deposit as the customer demands which is not found in saving accounts or other accounts as they have a limit to it. Its’ tradeoff is that its’ doesn’t offer much interest. The deposit and withdrawal are made by ATM, electronic credit or debit card, and checks.


These accounts are set up at the financial institution’s website or at a bank branch. The money can be deposited in the checking account via ATM, direct account, or over the counter deposit. The withdrawal of money from these accounts is through ATM, electronic /credit cards, and checks. With the advancement of technology, deposits are made by electronic transfer, there are automatic payment options for the routine payment made every month, and the smartphone is also used for this purpose. This means that the payment can be withdrawn and deposited without writing checks or mailing paper checks. For usage checking accounts have commercial and business accounts, student accounts, and joint accounts too. Business accounts are owned by business authorities for their commercial purpose, student accounts are free accounts and by the time they graduate they are not charged for their account. The joint account is general for the couples in a marital relationship in which both have access to the account.


Banks earn from interest rates but also from service charges from accounts that are not much interest-driven. From an account with less deposit to the account with more deposit the bank charges equally, however with the less deposit the bank also charges when the customer fails to maintain a minimum balance or write too many checks or overdraw an account. The purpose of charging is that if there are two accounts one with a deposit of $10 and one with $5000, the bank will have to pay equal to maintain the two accounts whereas one account is helping them in earning more interest than the other so to overcome this the bank charges fee for the account that does not maintain a minimum balance.  There is one way to overcome this as a customer of a large bank, it is to politely ask them to do so. Explain the situation and be aware that such courtesy cancellations are a one time deal.

There is a concept of overdraft protection in checking accounts. According to this if a customer of such an account withdraws $100 from an account that has only $ 50 he will make to pay for the extra transaction made. If your account remains overdrawn the bank will charge daily interest on the loan. However, this can be avoided using an option that is out of overdraft coverage choosing a checking account that doesn’t have an overdraft fee, or by keeping money in a linked account. Most banks do not tell about their overdraft protection. Using the option mentioned above to save yourself from this fee, few banks are likely not to charge for one to five overdraft fees in one-year period of time although for this option to you will have to call and request them for it. Also, few banks have the policy to waiver the fees for insufficient funds incurred on up to four business days in every 12 months on its Sapphire Checking accounts.



The whole idea of providing new customers with sign-up bonuses is to make sure that their bank is different than other banks. These types of bonuses also serve another purpose i.e. to bring in new people as customers and getting them to deposit more money in their banks. There are two ways to pay back customers for their deposits i.e. by giving them more on their deposits or simply giving them bonuses and most banks prefer bonuses. Some of the best sign up bonuses are associated bank for $500 bonus, HSBC Bank for $200 or $450 bonus, TD Bank for $150 or $300 bonus, Chase Bank for $200 bonus, Huntington National Bank for $150, $200, $500, $400 or $750 bonus, SunTrust (Trust) Bank for $200 or $500 bonus, Bank of America for $100 bonus, Axos Bank for $100 bonus for new business owners.

One of the Chief Financial Analysts of Bankrate, Greg McBride explained why it’s easier to give out bonuses and said it’s way easier to calculate how much bonuses to give out than to estimate the rate on deposits that banks should pay their customers.

Then again, TD Bank and some other banks might also offer more than just one-time bonuses. However, this depends on several things, and often becoming eligible for more than one bonus is not possible. Furthermore, these bonuses are usually provided to you when you first sign-up and become a new customer of a checking or savings account.


If you choose an interest-bearing checking account then the deposit maintained should be at least the minimum balance, which includes a deposit in the checking account, saving account, and certificate of deposit. Because if you don’t meet the minimum balance then the bank will charge a hefty fee for it. The minimum balance in a noninterest checking account would be $622. Whereas according to one study in 2019 the minimum balance in an interest-based account would be $7, 123 to avoid bank charging fees on it.,electronic%20debits%2C%20among%20other%20methods.