Sending money from one account to another has become very easy nowadays. With the advancement of internet use in the banking sector, many people can make transactions fast, securely, and in a convenient manner. Business people can send money with checking account number as long as they have routing numbers.
If you are wondering what a checking account is, then we can explain. A checking account is an account that allows you to make deposits and withdrawals anytime. In other words, a checking account is a bank in your hands. Most of the checking accounts utilize special mobile applications and require the use of the internet. Interestingly, most checking accounts allow for unlimited deposits and withdrawals. It makes life easy to the users. Moreover, you can shop online with checking account.
As a checking account user, you need to know that checking accounts are best for keeping the money you need to spend any time and more so during emergency times. You cannot get much interest rate as compared to ordinary savings accounts. It is better to save the extra money into a high-interest rate saving account so that it can grow.
How do you access money in your checking account?
Accessing money in your checking account is very easy. There are several simple ways you can use to obtain cash from your checking account. They include the following.
- Using online transaction method
- writing checks
- setting an automatic payment with a company that offers you services and your bank
- use ATM service points
- personally visit your branch to deposit or withdraw
- use your debit card connected to your account to make purchases
Many people prefer the use of a credit card since the method is fast and convenient. Again, with a credit card, online shopping is effortless. You can Pay by electronic check online shopping and have your goods delivered to you.
It is essential to understand that; there are different types of checking accounts. It leaves you with several options to choose which checking account suits you.
What are the different types of checking accounts?
As earlier mentioned, there are several types of checking accounts. These include;
i. Interest-bearing checking account
An interest checking account allows you to earn interest on the amount of money in your account. The difference between it and the ordinary saving account is that you can write checks, use debit cards, or even transact online using the internet. You can send money with credit card to a supplier of goods without going to the bank to make withdrawals.
ii. Free checking accounts
Free checking accounts require no monthly maintenance fees. Additionally, they don’t have minimum balance requirements. Very few banks offer such options nowadays. However, there is a minimum monthly deposit. Depositing below this can make you lose your free checking benefit.
iii. Lifeline checking account
This checking account is for low-income earners. It has no monthly fees but requires a low account balance. The only disadvantage is that they have limited monthly transactions.
iv. Student checking account
Student checking accounts receive a lot of favours from banks. They allow a small minimum balance. Moreover, beneficiaries enjoy low transaction costs. The services are available for students between 17 -24 years. As a student, you must provide proof of enrolments from the institution you are doing your studies. Mostly, students prefer to send money with credit card rather than queuing in banks.
v. Second chance checking accounts
Second chance checking accounts are there to give you another trial if they turned you down before. Sometimes you may have bad credit or find yourself in a misunderstanding with your bank. It can deny you an opportunity to get a checking account with them. However, you may come back when things are good and get a second chance checking account.
vi. Joint checking account
Two or more people open a joint checking account. It can be shared between couples or among family members. Every member is free to deposit and make withdrawals under authorization by the others. There should be a clear outline on how to operate the account to avoid disputes.
vii. Trust checking account
A trustee operates a trust checking account on behalf of someone else. Your parent, family member, or an accountant can be a trustee to manage your checking account. He or she can assist you in depositing and withdrawing funds. The person must be trustworthy enough always to do the right thing.
Moreover, he or she must have explicit knowledge on crucial aspects such as how to transfer money using routing number and account number. Children mostly own such accounts, as well as the aged, blind, or people with an incapacitating disability.
How do you write a check?
Sometimes you may not be in a position to send money with credit card but only by writing a check. Let us teach you how to write a check. It can be challenging to write it for the first time, but when you get used, it becomes effortless. The following is an elaborate procedure of writing a check.
- Fill in the day’s dates on the space provided on the top right side of the check.
- Where written, PAY TO THE ORDER OF, enter the recipient of the money.
- Within the box with the dollar ($) sign, enter the amount to pay. Write in numbers, for example, 238.
- Check the next line and write the amount in words. For example, the above should be written as two hundred and thirty-eight. Make sure you fill the entire space to ensure no fraud is carried out.
- Write the account number of the recipient at the bottom of the check.
- The last thing is your signature. Put your stamp at the bottom of the check on the space provided.
How can you send money using a checking account number?
Today banking has become easy. You can transfer money from your checking account to another account of the same bank or of a different bank. Banks can guide you on how to transfer money using routing number and account number successfully. Sending money from one account to the other of the same within the same bank is easy and fast.
In most cases, it is free. Sending money from one bank to a different bank takes some time and charges high fees. It involves the interaction of external servers. The following methods are the most used when it comes to sending money.
Use of checks
Earlier on, we discussed how to write checks. Checks have been in use for a long time and are sufficient to send money with checking account number. As long as you move around with your checkbook, you have the power to manage your account. You need the recipient’s name and the account number, and you are free to go. Checks operate across banks. It is thus not a must that the recipient is from your bank.
Most banks don’t charge sending or receiving a check. You can take it to the recipient in person, or send by mail. The recipient can deposit the check-in person, by a mobile app or by ATM. Checks bounce if your account has insufficient money, or you filled in some details incorrectly. Sometimes you may incur overdraft fees if you have insufficient money in your account.
Through bank transfer
Bank or wire transfer is simple. You need the account number and the routing number of the receiver. In case you don’t know, bank tellers can direct you. You can transact online using your phone or visit your bank. Banks transfer involves some charges both to the sender and the receiver.
Venmo is a peer-to-peer money transfer service. You can send money to your friend, or pay a hotel bill with just a few taps on your phone. Venmo operates in the United States of America. You need the recipient’s phone number or email address and username for a successful transaction. To use this service, you must create an account with Venmo and link your credit or debit bank account.
Through a mobile app
Most banks accounts can be accessed remotely by the use of apps. You require internet to run the apps. Using the app, you can log into your bank account and send money. You input the receiver’s details accurately and then hit send after entering the exact amount to transfer.
The majority can admit that to send money with checking account number is the easiest and convenient way ever. Additionally, it is secure. Checking accounts are very beneficial to business people and students. However, you should be cautious.
There is a lot of fraud in the money sector. Some hackers can trace your transaction activities and steal your crucial data. It is always advisable to never share your bank details with anybody, and more so, the Private Identification Number (PIN). You should report any suspicious activity in your account for your bank to take immediate action.