What Is a Checking Account? Overview and How It Works

By Rachel Warren – Updated Aug 22, 2025 at 8:38 PM EST | Fact-checked by Frank Bass

Key Points

Checking accounts allow for unlimited daily transactions and are insured up to $250,000.
They offer various deposit methods and access tools like debit cards and online banking.
Be aware of possible fees for account maintenance, overdrafts, and external ATM use.

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An accountant checking a report line by line with the aid of a calculator. — Image source: Getty Images.

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The bottom line

Checking accounts are generally designed for transactional purposes rather than earning high interest. For long-term savings goals, a savings account or other investment accounts may be more suitable. Ideally, you'll benefit from having multiple accounts to manage your finances effectively.

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About the Author

Rachel Warren is a contributing Motley Fool stock market analyst covering pharmaceuticals, biotechnology, medical devices, information technology, and consumer goods. Prior to The Motley Fool, Rachel was a paralegal and legal administrator. She holds a bachelor’s degree in paralegal studies from Liberty University School of Law.

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