Advantages and Disadvantages of Checking Account

July 26, 2015  //  Posted by: Suzan  //  Category: Personal Finance

Checking AccountChecking account is very useful account for the people who don’t want to carry their cash everywhere. Checking account is considered as the primary tool in US banks. You will observe people opening more of checking accounts as compared to the savings and current account. Opening a checking account is very easy and simple. Its procedure is not complex as compared to the other account in the banks. The concept of checking account are widely accepted by the financial institutions, banks or the credit unions because it can help the them to sustain and make their prestige of the bank. Checking account is considered a featured account which is stored with many benefits for the customers opening the checking account. There are many advantages of checking account but it is also supplied with the disadvantages too. These advantages and the disadvantages will help you to ascertain the concept of checking account.




  • Checking account is such account which can be opened with the nominal fees of bank. Unlike other accounts in the banks. People is resolved from the problem of caring cash at everywhere but with the help of the checking account the checks are prepared and paid off against cash. This account is more safer as compared to the other accounts in the bank.
  • Another benefit is the direct deposits of check. Account holder firstly would have to go the banks to deposit their checks in their respective checking account but the problem have been solved by introducing the feature of direct deposit. With the help of direct deposit the paychecks gets automatically deposited in the respective checking account of the account holder.
  • Checking account also provides with facilities of debit cards so that faster access can take place for the account holders. And majority of banks have established their ATMs as several distance so that the account holders can withdraw their money from the account. Even the checking account holders can use the different banks ATMs for withdrawing their money with the ease.


  • The biggest disadvantage of checking account is the overdraft fees system. Account holders have the perception of minimum balance in their checking account which can be maintained in the account but the bank charges overdraft fees if the balance fall minimum. The bank will send the message and details regarding the overdraft fees to the account holder of the checking account.
  • Other disadvantage of checking account is the limitation on the number of withdrawals from the ATMs. All banks have their different idea and system and accordingly they function. This demerit restricts the account holder to use the ATM service for many times. It is possible that the bank can charge additional fees for undergoing the transaction through ATMs.
  • Before opening the checking account in the bank it is advisable to note down all the necessary information of the bank and the prescribed information because it can create problems afterwards. Because every bank have their different rules and regulations which can be varied and not according to the requirement of the checking account holder.

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