• Thursday July 9,2020

Current account

We explain to you what a checking account is, what it is for and the requirements to have one. In addition, its difference with a savings account.

A checking account allows you to have funds effectively.
  1. What is a checking account?

It is known as `` checking account (abbreviated: cta. Cte .) To a bank contract that allows the account holder to enter funds and dispose of them effectively, through various products such as checkbooks, checks, ATMs, bank windows or electronic transfers, but that at the same time does not generate any type of interest in favor of your person.

A checking account allows the user to have their money, buy, pay taxes and make payments for other types of services of the bank itself, being its main income account.

Debit cards, credit cards, electronic wallets and other products are usually associated with it. Usually, when a loan is contracted, their fees are paid through discounts on a checking account.

For opening a checking account various requirements are usually demanded, usually greater than a simple savings account, such as salary checks, credit record reviews, etc. And often the financial institution requires a minimum opening amount, if not a minimum balance (not to pay maintenance amount).

In some countries, such as Argentina, the different current account is understood: as an open credit line in favor of the client, which can be available up to a maximum amount, as long as you pay the debt due the following month without fail.

See also: Bank Credit.

  1. What is a checking account for?

A checking account does not generate interest in favor of the user.

As mentioned, a checking account is a tool to more readily dispose of the money entered, which is usually accompanied by instruments such as checkbooks or credit cards.

Since a checking account does not generate interest in favor of the user, it is usually understood not as a savings deposit, but as money destined for daily use, that is, an account in which money will enter and leave regularly, from which will deduct loans, taxes, etc.

  1. Difference between checking account and savings account

Savings accounts have as end capital accumulation.

Savings accounts, unlike current accounts, are simpler financial instruments : bank deposits in which money is deposited that will be poorly mobilized (or less than in the current one, at least), and therefore destined to grow.

By having a simpler process than a checking account, savings accounts do not receive financial instruments such as credit cards or checkbooks (usually only a debit card) since their purpose is the accumulation of capital ; for that same reason they generate a certain monthly percentage of interest in favor of the holder, deposited at the end of the month in the account itself.

Interesting Articles

Nihilism

Nihilism

We explain to you what nihilism is, what was the origin of this famous term and what Russian nihilism consisted of. Nihilism denies that existence has a meaningful sense of some. What is nihilism? When talking about nihilism, usually denies the denial of traditional forms of moral and religious values , or any form of thought that finds guiding principles to life

Animal Kingdom

Animal Kingdom

We explain to you what the animal kingdom is, what is its origin and its characteristics. In addition, how is its classification, taxonomy and examples. The animal kingdom belongs to about two million different species. What is the animal kingdom? The animal or animal kingdom constitutes, together with the vegetable kingdom, fungi, protists and moneras, one of the possible ways in which biology classifies known life forms

fungi kingdom

fungi kingdom

We explain to you what the fungi kingdom is, what are its characteristics and classification. In addition, how is your nutrition, reproduction and examples. It is estimated that there are about 1.5 million species of unknown fungi. What is the kingdom? The kingdom was one of the groups in which biology classifies known life forms

Reportage

Reportage

We explain to you what a report is and why it is considered a journalistic account. In addition, its characteristics and how is its structure. A report has several broadcast channels. What is reportage? The report is a journalistic work , whether cinematographic or sports (to name a point) that contains an informational purpose

Financial Planning

Financial Planning

We explain to you what the financial planning and what are its objectives. In addition, how it is classified, why it is important and examples. Financial planning must consider deadlines, costs and objectives in detail. What is financial planning? In the field of administration and finance, financial planning or financial planning is known as the process of determining how an organization, company or person will manage its resources capital to achieve its established objectives

Covalent bond

Covalent bond

We explain what a covalent bond is and some of its characteristics. In addition, covalent link types and examples. In a covalent bond, the linked atoms share an additional pair of electrons. What is a covalent bond? It is called a covalent bond, a type of chemical bond, which occurs when two atoms link together to form a molecule, sharing electrons