Checking accounts became important as soon as banking systems were set up. They make it easier to pay online and transfer money from one account to another.
You can instantly send money with checking account if you simply share recipient’s account information.
Easy money transfer has become need of the time. We all wish to do it shortest period of time and send money to our friends or relatives regardless of how far they are.
Checking accounts make this job a whole lot easier!
Since it is such an important thing, we will cover everything about setting up checking account to using its account number and routing number for sharing funds in this article.
What It Is And How You Can Send Money With Checking Account
First of all, some readers here might need help in understanding what checking account really is.
Such account are crucial when it comes to emergency financial situations. They are most important in building relationship with banking institutes and maintaining a good banking history.
Consequently, a stable and active checking account can help you get approval for personal loans on good terms if needs.
Checking accounts also make it easy to access money especially because they operate well online. You can deposit funds, take money out, and also send money to others easily.
How Checking Account Works
The next important thing is to understand how checking accounts work. Luckily, they are simple and allow you to deposit or exchange money any time.
If you have a checking account, you can withdraw money at an ATM, make electronic debits, and also write checks to other people when necessary.
Note! Usage of checking account is quite flexible which means that your money is almost liquid. You can utilize it any time you wish without going through long, confusing procedures.
The basic difference between a checking account and savings account is that the latter one has a limit on how much you can withdraw.
Savings account has transaction limits as well whereas checking account lets you take out as much money as your deposits allow.
How To Send Money With Checking Account
Now we come down to the most important section of the article i.e. how can you send money with checking account.
There are many ways to perform this task and different modes as well. Let’s have a look at 3 most commonly used method of sending and receiving money through checking accounts.
Send Money Using Account Number
You can send money using account number either by logging into bank’s online account or visiting its physical branch.
When you are transferring money online, you have to tap on “send money” and then enter the amount that you wish to share.
Make sure you provide the correct information for the recipient’s account or you might end up sending it to a wrong person.
Once you have entered the account number of the recipient, you can finalize the money transfer.
However, remember to check that you have sufficient funds in your account before sharing money or the transfer will be cancelled.
Keep in mind that whether you are sharing within the same bank or in a different bank, it would require you to link the two accounts together. Otherwise, the transaction would not be successful.
Send Money To Bank Account
Transferring money to bank account is quite simple as long as you have enough fund to make the transaction.
There are only few banks that allow you to overdraft and pay back the money later. This feature is not offered by all banking services.
Note! It is never a good idea to overdraft. This is because your bank may allow you to perform this action but it will almost always charge a high fee for doing so.
It is, however, a different story if you own a reliable credit card that lets you take out money from the credit limit and refund later. This action often does not incur extra charges.
You can also use a cheque to send money to your bank account. This method is often utilized in businesses where customers make cheque payment that you can take up to your bank and deposit the funds there.
The process is instant and fool-proof. However, it can take up to 3 weeks for the money to be transferred.
Methods to send money to your account when you are living abroad can be a bit different. You can use services like Money Gram or PayPal to make the transaction in this case.
Send Money Online From One Bank Account To Another
Sharing money online is perhaps one of the easiest ways of doing so especially since some really good internet services have been introduced.
This eliminated the need to get in long queue when you need to deposit or withdraw money from bank account.
Online banking systems let you transfer money just with the use of internet. This is possible with all debit cards and good credit cards as well.
You just have to share your PIN and the recipient’s account number. When using services like PayPal or Payoneer, you might also have to enter recipient’s email ID.
If you make money transfer using a debit card, the funds will be deducted from your account immediately.
Some More Information About Checking Accounts
So this was all you should know about transferring money with checking account. Now before we wind up this article, there are some important pointers you should be aware of when it comes to creating and using a checking account.
Let’s have a look at some of them!
How To Open a Checking Account
If you have previously ever applied for a credit card online, you would see that opening a checking account is as easy as that!
First of all, you have to visit the bank of your choice and check out their terms and conditions as well as charged involved in account opening.
Note! You also have to check whether you need to make an initial deposit or not and what is the minimum balance requirement for the bank.
Once you have obtained all the information, you have to provide the required identification documents and open the account.
All of this can be done online but just make sure that you are using a safe internet service that does not leak your personal information.
When your checking account is opened, it is always a good idea to get the associated debit card or credit card.
This makes it easier to share money online and also helps to withdraw money at an ATM.
Expenses Of Keeping a Checking Account
Creating a checking account is free of cost in most cases but some banks may ask you to make a deposit initially as a form of security. Typically, this will be around $25 so you don’t need to worry!
Some premium bank accounts may require you to pay a higher amount even as much as hundreds of dollars. Moreover, you should make sure that there are no hidden fees or minimum balance requirements.
Attention! Banks that have a minimum balance requirement will charge you if your account balance falls below a certain value.
If you think that maintaining a checking account can get expensive for you, keep in mind that it is not your only option to send and receive money.
You can always opt for reloadable prepaid cards that allow you to share funds across the globe.
How Long Does Money Transfer With Checking Account Takes
The time it takes to transfer the money depends on whether you are sharing funds within the same bank network or a different one. In case of same bank, the transfer may take only an hour or even just a minute.
Bank transfer to a different network can take a couple of days. The transaction fees are also a bit higher in this case.
Therefore, this sort of transfer is never suitable if you want the recipient to receive the money instantly.
How Checking Accounts Without Initial Deposit Work?
Although this is not possible with all sorts of banking systems, some of them will allow you to open a checking account without making any deposit at the start.
Luckily, these banks also do not have any cap on minimum balance requirement.
This means you can open an account with just a small amount of money and operate the account with all features and benefits. Some of the common banks that allow this includes:
- Capital One Bank
- Discover Bank
- Ally Bank
- Bank of USA
- Charles Schwab Bank
Best Options If You Wish To Open Free Checking Accounts
There are many banks that allow you to open a free checking account. Most of these banks do not you Chexsystems and therefore it is easier to open an account there without scrutiny.
BBVA is one of the most reliable options when it comes to open a checking account with unstable banking history.
Other than that, you can consider TD Bank, Empower Interest checking account, Chime Deposit account, Varo Bank account, etc.
Moreover, these banks also issue credit cards and debit cards that can help you withdraw money and share funds as well. Most common electronic card services are MasterCard, Visa, and American Express.
Best Options If You Want Checking Accounts With Bad Credit
Poor credit history can make it quite difficult for someone to manage finances. Luckily there are checking account for bad credit that report to credit bureaus as well and can help you improve your relationship with banking institutes.
There is no need to worry since there are stores that let you shop with bad credit but relying on banks is a good way to improve your finances over time.
You just have to find out the right places that can be helpful in this case. Consider looking into BBVA, FifthThird Express Banking, One United Bank, American Credit Union, etc.
Checking accounts are easy to open and they are convenient to use as well. When you have to frequently transfer money from one account to another, such accounts can really simplify your work.
Checking accounts ensure you are not limited with money deposit and withdrawal unlike savings account. Hopefully, this article would help you in opening your new account and then using it to share funds. Best of Luck!
Jamie Johnson is very enthusiastic Kansas City – based freelance writer, and her core expertise are finance and insurance. She has been endorsed on several personal finance, insurance & business website to share her thoughts. Her publications can be found on famous sites like Bankrate, The Balance, Business Insider, Chamber of Commerce and many others.
From many years, she served more than 10,000 hours of research and writing to more than 2000 articles related to personal finance, credit building, mortgages, and personal and student loans.