The current account it's a contract between a Bank and a customer who states that the entity will comply with the payment orders of the person according to the amount of money that you have deposited or at credit I have agreed. This account can be opened and managed by a person or by a group of people; In the latter case, depending on the conditions, all individuals may be enabled to operate.
The owner of a checking account can dispose of the money through a ATM , the cashier window or some kind of checkbook (like a check ). It is possible to make effect discounts, link payments to the account and collect or pay interest or taxes, for example.
Checks and cards are the means of payment most usually associated with a checking account. There are two types of card: the credit card (whose summary must be paid at the end of a period: that is, when the customer pays a product or service with this card, acquires a debt and does not deliver the money immediately) and the Debit (the money is automatically subtracted from the client's funds).
Each bank has its requirements for opening a checking account. In general, the entity is responsible for verifying the payment capacity of its potential clients (to find out how much credit the bank can deliver without any risks) and the origin of its income (to avoid illegal movements).
When the client incurs a debt greater than the one agreed with the bank (what is known as "Turn bare") and delay in paying it, you must pay interests or punitive.
Advantages and disadvantages
As well as other types of account, the current offers tempting advantages at the same time as undeniable disadvantages to its customers, so it is essential to analyze all its faces before taking a decision. Below is a list of the benefits and inconveniences that current accounts usually generate, starting with the positive points:
+ gives customers access to all services granted by the bank, such as mortgages, loans, grants and promotions. The current account is a strong link with the bank, a relationship in the professional and commercial level;
+ serves as a deposit and, at the same time, allows Payments through checks or credit and debit cards;
+ Thanks to the possibility of using bank checks, the checking account gives the possibility of making balance transfers to third parties, one of the main features that differentiate it from the savings account. Furthermore, if the necessary funds for the operation are not available, some entities allow financing the amounts issued through checks, which translates into the convenience of paying for the consumption of goods and services without the need for money. Immediately;
+ You can offer services such as cashier's checks and travel checks at no additional cost;
+ In general, it gives its users the possibility to carry out transfers and transfers, and to domicile the payroll (automatically enter the salary), as well as tax and service payments;
+ it is linked to a series of additional products, such as pension plans, investment funds and insurance;
+ it allows online operations, which considerably facilitates its accessibility and streamlines processes;
- generally, when the balance does not reach the minimum required by the bank, maintenance rates increase;
- the bank usually charges commissions for each operation (the most common example is money transfers abroad);
- In some cases, reaching or exceeding a certain amount of balance entails the payment of certain interests.