Checking accounts are financial accounts that are used for day-to-day cash deposits and withdrawals. You can access your money with a debit card, through online transfers or by writing checks.

Here’s a closer look at checking accounts, plus some tips on how to select the right account for you.

Checking accounts are handy, all-purpose places to keep money in the short- to medium-term. Your employer can directly deposit your paychecks in the account, you can link it to payment apps like Venmo and PayPal, you can pay bills from it and more. Checking accounts are a building block to manage your money and make all kinds of financial tasks easier.

What’s the difference between a checking account and a savings account?

Checking accounts typically come with personal checks and a debit or ATM card. You’ll probably use a debit or ATM card to access the money in your account more often than checks.

Checking accounts tend to have lower interest rates than savings accounts. Savings or money market accounts typically have higher interest rates. Certain providers, typically online-only financial institutions, offer checking accounts with higher interest rates.

Common fees associated with checking accounts

Fees can put an unnecessary dent in your pocket. Here are some to be aware of:

  • Monthly maintenance fees. Checking accounts, especially at large national banks, can have maintenance fees as high as $15 a month. Some providers will waive the fee if you meet certain criteria, such as keeping a minimum balance or setting up direct deposit. Read the fine print before opening an account.

» Want to avoid monthly fees altogether? Take a look at the Best Free Checking Accounts

  • Overdraft fees. These are charged when you spend more than you have in your account and choose to enroll in a feature called overdraft protection. These fees can be expensive; the median overdraft fee at large banks is around $35.

Here’s a sampling of accounts with a range of features.

How to choose a checking account

Here are some features to consider before opening a new checking account.

  • Look for low or no fees and a low or no minimum balance. The best checking accounts don’t charge fees or require high minimum balances.

  • Check for a broad ATM network. If you anticipate that you’ll need to deposit and withdraw cash, you’ll want to look for an account at an institution that has a network of ATMs that you can access.

  • See if the account has an interest rate. Most checking accounts have low or no interest, but you may find an account that offers a decent rate.

  • Keep an eye out for sign-up bonuses. Some providers will give you money for opening an account with them — here are the best bonuses this month. You shouldn’t pick an account based solely on a promotion, but it could help you decide between two otherwise comparable options.

  • Consider credit unions, online banks and nonbank financial service providers as well. These institutions can have certain advantages that traditional brick-and-mortar banks might not. Online providers tend to have low or no fees, high interest rates and user-friendly mobile banking capabilities. Credit unions often have strong customer service and higher interest rates than traditional banks.

There are several different types of checking accounts.

If you:

You’ll want to check out (click link for our recommendations):

Want low or no fees and don’t need branch access.

Online checking.

Are looking to make some money back on your account and willing to jump through some hoops.

Rewards checking or high-interest checking.

Are under the age of 18 and/or are enrolled in high school, college or a vocational school.

Student checking or teen checking.

How to open and set up a checking account

Once you’ve selected a new account, opening it is mainly a matter of following the right steps and having a few important documents on hand.

Now, you’re ready to start taking full advantage of the account. That may include signing up for direct deposit and online payments, and scheduling automatic transfers to your savings account to bolster your nest egg. These features and more will make you happy you found a place to park — and make use of — your cash.

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