A checking account is a type of account that allows you to deposit and spend money. A checking account is also called a spending account since you can keep money that you can spend at any given time. There are various ways you can use money in your checking account, including sending to others, buying goods online, and withdrawing to get cash. You will know how to withdraw money from a checking account shortly.
The ability to withdraw money in a checking account to get cash allows you to deal with various transaction processes that require cash payments. There are retail shops in your neighborhood that do not have POS payment or any other cashless payment systems. Therefore, having cash is very beneficial. That is why this article seeks to give you detailed information on how you can go about the cash withdrawal process.
To use a checking account, you have to create it either online or at a physical branch. Most financial institutions are now allowing people to create bank accounts online, thanks to the advancement of financial digital transaction tools. Creating and using a checking account online allows you to save a lot of time that you could have wasted when queuing in a physical branch.
What are the requirements to create a checking account?
Creating a checking account is the easiest thing you can do if you have all the requirements. The following are all that you need to open a checking account with a bank or credit union.
- A Social Security Number (SSN)
- Phone number
- Email address
- An Identification document, e.g., passport, government ID card, or a driver’s license
- A physical address
The federal government of the US requires that every financial institution request all the above details from anyone opening an account. The Social Security Number’s importance is to help the federal government keep track of your lifetime earnings plus the number of years worked.
Also, together with your identification document, the Social Security Number helps identify you correctly and prevents criminals from opening accounts with financial institutions. We all know what criminals such as terrorists and drug traffickers can do if no identity documents are required when opening an account. The phone number, email, and address are mainly for communication purposes.
How to open a checking account
Once you have got all the necessary things, you can then start applying for your checking account. You can either apply for a checking account online or at a physical branch. There are numerous free online checking accounts with no opening deposit or credit check that you can easily open.
The online application requires you to visit the bank or credit union of your choice’s website and begin your application. Some financial institutions require you to download a mobile banking application and then proceed to apply.
Once you visit your bank’s account application page online, you have to enter all the details in the spaces provided. Usually, financial institutions require you to fill out a form with the details needed. You will fill in your full name, ZIP code, State, City, physical address, phone number, and other necessary items to open a bank account.
Moreover, your bank may require you to upload some documents such as your identification document and your recent bill receipt to confirm your identity and physical address, respectively. Once everything is in order, you can hit submit and wait for verification. Most online banks reply within minutes, and you can know whether you qualified for the account or not.
You can also apply for a checking account at a physical branch, and you should go with your documents to present when opening. You will fill in some paperwork and may be forced to move from desk to desk before you complete the process. Some institutions complete your registration immediately, while others take a few days to reply about your account application status. Remember that you may not qualify for a bank account if your names are in the ChexSystems.
Once your checking account is ready, you will also get a debit card linking your bank account to your physical address. Also, you get a unique number called an account number that allows others to send money to your account. The account number is essential because if you want to transfer money to someone else’s bank account, you require their account numbers and maybe their full names.
What are the uses of a checking account?
A checking account allows you to carry out various kinds of transactions. They include the following.
i) Pay for goods and services
You can easily make payments for your goods and services online or in physical stores using your checking account. All you need are the merchant’s business account details to make the payments. Businesses allow you to send money directly into their bank account using routing and account numbers or pay via middle parties such as Square, Cash App, and Venmo.
You can also set up a recurrent money transfer to pay for water, electricity, internet services, or any other services that you use in your home or office.
ii) Withdraw money
A checking account allows you to withdraw funds from your account over the counter of your bank or credit union. You can also get funds out of your account using a debit card at an ATM point.
iii) Send money
You can easily send money to others using your checking account. If you have your recipient’s account number, you can transfer money to them either online or at a branch with the help of a cashier.
iv) Save money
Some checking accounts allow you to save money when you maintain a certain minimum amount of money in your account. Such accounts attract high Annual Percentage Yields to encourage you to save more.
How to withdraw money from checking account?
There are various ways you can withdraw money from your checking account. They include the following.
1) Over the counter withdrawal
You can withdraw funds from your checking account over the counter at any of your bank’s branches. You need your identification document and sign the withdrawal receipt with your signature when opening your account.
The cashier then debits the amount you are withdrawing from your account and then issues you with cash. Your balance then reads less than the amount you have withdrawn.
2) Withdraw at an ATM point
You can also get money out of your checking account using a debit card at an ATM point. Then you require the card PIN that you will enter to access your account. You should insert the card at the ATM point at the slot shown with a card symbol, enter your PIN and navigate to withdraw funds.
After that, you enter the amount to withdraw and press okay. The machine processes your requests and presents you with the money just below the screen for you to pick.
3) Use a check
You can withdraw dollars from a checking account using a check. That is when you want someone else to withdraw money from your account. You can write a cashier’s check or a regular check. A cashier’s check is fast and takes a short time to process since the funds are withdrawn as soon as you write the check. A regular check can take longer due to the processing involved.
How do I use a checking account to send money to other banks?
You can not only send money to bank accounts of the same institution as yours, but also to other banks. You can transfer money using the routing number and account number to accounts of other banks so long as your bank or credit union allows you to do so.
Usually, banks allow you to transfer money to other banks, and you will never miss that service in a US bank. You can either transfer online when you sign in to your account and carry out an ACH transfer or visit a physical branch to get assistance from the cashier.
When sending money online, you can choose either wire or ACH transfer. If the funds are urgent, you can use a wire transfer at a fee. However, an ACH transfer is better since you may pay nothing or very little for the transaction. Moreover, ACH transfer is secure compared to wire transfers.
Bank to bank transfers may be domestic or international. Domestic transfers take a shorter time compared to international transfers.
Can you cancel a bank-to-bank transfer?
It is possible to cancel a bank-to-bank transfer depending on the method used to carry out the transfer. If you use the ACH money transfer method, you can cancel the transaction if the recipient has not claimed them. However, you may not cancel a transfer if you use a wire transfer since the transfers are instant.
Should I disclose my routing and account numbers?
Many people usually worry about the dangers of exposing the routing and account numbers of their accounts. Well, it can be risky to expose the details to anyone that you do not trust. But can someone withdraw money with my account number and routing number? For sure, fraudsters can use the two types of numbers to steal from you by ordering checks from your bank that they use to buy goods and services.
A checking account is a bank or credit union account that allows you to deposit and use money. Checking accounts allow you to withdraw money any time of the day from your account. You can create a checking account either online or at a physical branch. Online account application is better since it saves you time. You can also withdraw some dollars out of your account at a branch or an ATM point.