3900policies Checking Accounts Financial institutions usually have more than one type of checking account. You must decide what best meets your needs.
Checks are the most widely used means of transmitting money.
When opening a checking account at a financial institution the customer enters into a contractual agreement that allows the customer to deposit money in the bank and to write checks on that account. The financial institution agrees to maintain the account, provide records, and honor checks. Sometimes checks are called demand deposits, because it is a demand on the customers deposit. Checks are safe, convenient, and provide a receipt for proof of payment. If the depositor's account balance drops below the minimum then they must pay a service charge.