Checking account
A bank account for everyday spending. You use it with a debit card, transfers and bill payments.
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Related words
- Savings account
- A bank account for money you're setting aside. It pays some interest.
- Debit card
- A card that spends money straight out of your bank account.
- Overdraft
- When you spend more than you have in your bank account. Banks may charge a fee or decline the payment.
- FDIC insurance
- Government protection for money in U.S. bank accounts, up to $250,000 per depositor at each insured bank, for each type of account ownership.
- Certificate of deposit
- A savings account, often called a CD, that pays a fixed interest rate if you leave your money in for a set time, like a year. Taking it out early usually costs a penalty.
- Emergency fund
- Money set aside only for surprises, like a car repair or a lost job. A common goal is three to six months of expenses, built up over time.
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