A checking account allows you to put your money (either checks or cash) into one account from which you can then write checks or withdraw cash. Checking accounts are convenient for many reasons.
First, like any FDIC insured bank account, they make sure that your money is protected from fire, theft, or other dangers. Second, they save you the inconvenience of having to pay for things in cash.
While cash may be convenient for small purchases, you may want to write a check for more expensive purchases (for example medications). Some companies, such as utilities or insurance companies require payment by check or money order.
When using a checking account, it's important to remember the following things:
You can find out more about opening a checking account and questions you may want to ask a bank later in this section in How to Open a Bank Account.
Next: Saving Accounts