{"id":1153,"date":"2012-07-16T20:03:49","date_gmt":"2012-07-16T20:03:49","guid":{"rendered":"http:\/\/www.knowfinance.com\/?p=1153"},"modified":"2012-07-16T20:03:49","modified_gmt":"2012-07-16T20:03:49","slug":"checking-account","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/learn\/checking-account\/","title":{"rendered":"Checking Account"},"content":{"rendered":"

A deposit account which is held at bank or financial institution by individuals\/business entities (account holders), offering them secured and swift access to funds on demand, through a variety of different channels, is called as transactional account or checking account.<\/p>\n

Transactional accounts are not meant for savings\u2019 purposes or earning interest, but for providing convenience to business or personal clients and therefore such accounts do not bear interests. As a matter of fact, a transactional account holder can deposit or transfer any amount of money from banks, depending on the availability of funds.<\/p>\n

A transactional account is also referred to as a checking account (or chequing account), mainly in North America. In the United Kingdom as well as in Hong Kong, India and some other countries, this account is called as a current account or cheque\/check account.<\/p>\n

Since the money deposited under this account can be withdrawn at anytime, it is therefore sometimes called as demand account or demand deposit account (DDA), except for \u201cNOW accounts\u201d in the U.S.- which are technically different.<\/p>\n

How It Started<\/p>\n

During early 1500\u2019s, The Netherlands used to be major trading and shipping center of the world. Those institutions or individuals who had acquired large amount of cash through businesses used to deposit their money with \u201ccashiers\u201d in order to safeguard their wealth. These cashiers held cash for fees. However, the number of cashiers increased, so did the competition. As a result, cashiers started providing hosts of other services to attract clients, including the paying out services to any person bearing a written order from a depositor to allow withdrawing money. Cashier kept a note as payment proof.<\/p>\n

Gradually, the idea spread in other countries such as England and some English colonies in North America. In Boston, land owners started mortgaging their lands to cahiers who in turn provided a account against which they (land owners) could write checks.<\/p>\n

Later in the eighteenth century, the word \u201ccheque\u201d appeared for the first time that were preprinted and carried serial numbers on the. At the end of the eighteenth century, problems arising out of clearing checks, (sending them from one bank to another for collection) paved the way for the development of clearing houses.<\/p>\n

Features And Access<\/p>\n

A transactional account holder is able to make or receive payments through following channels:<\/p>\n