From making daily transactions to paying bills online, a checking account comes in quite handy when it comes to handling your expenses on a daily basis. Deposits and withdrawals can be made from a checking account daily. 

Unlike savings accounts, transactional accounts are highly liquid, which allows you to deposit and withdraw money quite easily. ATMs, checks, and electronic debits can be used to access the funds in a checking account. 

So, if you are wondering about visiting your nearest Modesto banks and opening a checking account, here is a bit on how these accounts work and how they can make your entire banking experience more streamlined. 

Understanding A Checking Account

An account that has unlimited withdrawals and deposits is called a checking account. Daily transactions can be made by depositing a paycheck or withdrawing money via a debit card. 

Considering the fact that you can withdraw money from these bank accounts easily, checking accounts offer better liquidity than savings accounts. 

However, if you’re looking to save up for a house or a car, saving your funds in a checking account might not be the best option available for you. Perhaps, because checking accounts earn quite modestly when it comes to interest rates. 

To earn significant interest on your savings, you should move them to an investment or savings account. This might turn up as a great way to allow you to save as per your expectations. 

How Checking Accounts Work?

If you don’t have a checking account, you can open one online or at your local bank. If you want to make a deposit, you can submit a check or accept payment from another account holder. You can withdraw money using an ATM or debit card. Moreover, you may deposit and withdraw money instantly from checking accounts, thanks to their high liquidity. 


Not just this, owing to technological advancements in the banking industry, it is now possible to make electronic transfers and set up automatic payment deductions. 

There are two types of fees associated with a checking account; an overdraft fee is assessed if a transfer exceeds your bank balance. If your checking account falls short of funds, you may avoid this fee by enrolling in overdraft protection or linking your savings account to the checking account. The second one is a monthly service fee of $15. There are, however, conditions you must meet, such as maintaining a minimum balance to waive off the fee. 

Benefits of Checking Accounts

Here are some of the reasons why you should consider opening a checking account with Modesto banks. 

They Help You Earn on Interest Rates

One of the noteworthy benefits of a checking account is that they come with a high-yielding interest rate for saving your money in the account. So, if you have a high amount of deposit in your checking account, then you will get a high-yielding rate of interest. In short, this means that your money can grow while sitting in the account. 

These Accounts Are Highly Liquid

Checking accounts allow you to make unlimited transactions in a single day, helping you get easy access to your funds at any point in time. This saves you from the high additional fees charged by other accounts on making multiple transactions in a single day. You can withdraw, pay bills, and make transactions without any worry. 


They Offer Direct Deposit

With a checking account, you no longer have to wait for three days to use your salary. You can ask your employer to transfer your paycheck through direct deposit, allowing you to gain access to your funds almost instantly. So, if you have an urgent need for funds, the checking account makes it quick to get money into the account. In this way, you can avoid late fee payments in certain circumstances.  

They Let You Track Your Spending

One remarkable benefit checking accounts come with is they let you track your expenses, so you know where your funds are going and where they are coming from. This helps you to spend accordingly and keep your finances in check. Besides, a few account types offered by Modesto banks also allow you to lock your debit cards in case they are stolen. 

Why Is Checking Account Right For You? 

Checking accounts also come with FDIC insurance. Although the lower interest rate compared to a savings account might bother you; when it comes to handling daily expenses and paying bills, a checking account will keep you all sane. Worth an investment, we say!