What is a Personal Checking Account & How Does It Work

What is a personal checking account?

A personal checking account is a bank account designed for everyday transactions. It allows individuals to securely store their money and manage frequent transactions. With this type of account, you can deposit money, withdraw money, make purchases, pay bills, and -in some cases- even earn interest on your balance or reembolso on your transactions.

Unlike cuentas de ahorro, personal checking accounts are built for regular access and convenience.

How does a personal checking account work?

Once you have your account open, your money is securely stored and available for you to use how you need. You can:

• Fund the account: Most accounts have direct deposit capabilities, so you can set your paycheck up to automatically deposit into your account. Otherwise, you can transfer money from another account (like another checking or savings account), deposit checks in person or through your mobile banking app, or deposit cash in person or at an ATM.
• Make purchases: Once you open your account, you’ll receive a debit card that is connected to your account. It has your name, a unique card number, expiration date, and CVV code. Use it to make purchases in person and online, withdraw money at ATMs, and set up recurring bill payments online.
• Send money: You can send money to family and friends through direct transfer or Zelle®.*
• Withdraw money: Use your debit card at an ATM, visit the bank in person, or transfer funds to another account.
• Track transactions: View bank statements, set up transaction limit notifications, review transaction history in online banking, and add extra security to your card with apps like SecurLOCK™ Equip.*

Some accounts also offer overdraft protection that you can opt into or out of. If you make a transaction and don’t have enough money, your bank will cover it, but for an additional fee. If not, the transaction will simply decline if that’s what you prefer.

How do you open a personal checking account?

1. 1. Choose the right bank or credit union.
      • Fees: Some accounts have a monthly maintenance fee, but oftentimes it can be waived if you meet certain criteria like having direct deposit set up or maintaining a minimum balance. If there are fees, evaluate the likelihood you’ll meet the criteria each month to have them waived.
      • Accessibility: Make sure the institution you choose has a network of locations and ATMs that are close and easily accessible to you.
      • Technology: Look for institutions that can offer you all the tools and features that will make banking seamless. A mobile app, online customer support, mobile check deposit, budgeting tools, and credit score reporting are important things to have access to.
      • Reputation: Look at reviews to find out who people recommend, who has a great track record of exceptional service, and what the mission of the institution is.
   2. Gather the right documents
      • Government-issued ID (Driver’s license or passport)
      • Social Security Number or Individual Taxpayer Identification Number
      • Proof of address (Utility bill or lease agreement)
      • An opening deposit
   3. Visit in person or online to open an account
      Depending on the type of account and the financial institution, most have the option to open a personal checking account online. If it’s your first checking account, you may feel more comfortable going in person. A banker will be there to guide you every step of the way, answer any questions you have, and explain the fees, benefits, and features of the account you choose.
   4. Fund your account
      If you open an account online, you can transfer money from an existing account. If you go in person, you can also deposit cash or a check
   5. Set up tools and notifications
      • Activate your debit card
      • Enroll in online banking
      • Download the mobile banking app
      • Set up direct deposit with your employer
      • Enroll in Credit Report Monitoring*
      • Build your budget*
      • Set your transaction notifications to your preference

Personal checking accounts are a cornerstone of your everyday financial management. It’s important to understand how these accounts work so that you can make an informed decision when it comes to something as personal as your everyday finances. When you’re ready to open a checking account, explore different institutions, compare features, and choose an account that you’re confident will offer you the security and convenience you need.

Ready to get started? We’re here to help you navigate the process.

Stop by any of our banking center o concertar una cita today.

*Not available at all institutions.