Which of these is an advantage of checking accounts?

Which of these is an advantage of checking accounts?

A. Checking accounts prevent the customer from having overdraft fees.

B. Checking accounts allow convenient ways to deposit or withdraw funds.

C. Checking accounts are processed immediately so customer and bank records always match.

D. Checking accounts offer limited checks but offer higher rates of interest.

Answer: B. Checking accounts allow convenient ways to deposit or withdraw funds.

There are many advantages of checking accounts from the customer’s perspective, but the most obvious one is the use of such accounts for storing and trading money. This convenience is evident in many forms, which is why a checking account is an indispensable financial instrument in people’s everyday lives. Likewise, in direct deposit, account holders can deposit their pay check credit from the comfort of their homes, hence no need to visit a physical bank. They also add money by employing ATMs, especially for cash depositing or checks via mobile banking applications where they scan the check. Deposits are also quite easy and withdrawals come in the same basic forms which include the writing of normal checks, and debit cards for withdrawing cash by making purchases at physical stores or shops or online shops. Most also have linked checking accounts, with options for making recurring payments of utility bills, rent, and other bills through a linked checking account. Also, the account holder may transfer money to the savings account or make person-to-person payments through services such as Zelle, Venmo etc which usually link with the checking account. The level of flexibility in managing funds provided by checking accounts has no comparison with other financial products, and this is why check accounts are considered to be an irreplaceable part of modern people’s financial lives. Nevertheless, checking accounts do offer other features such as overdraft protection or paltry interest income; the main strength of checking accounts is that one can easily and in a myriad of ways transfer monies into and out of the same.