Checking accounts are much more consumer friendly in today's competitive banking environment. The basic purpose of checking accounts is to offer consumers a method to safely store money, yet have convenient and easy access to it as needed. As banks work hard to get consumers to hold their funds in accounts with them, perks and benefits tied to various checking accounts have become broader. This has given consumers and businesses more choices when selecting the right checking account.

Checking accounts programs generally begin with a basic or free checking account. These types of accounts offer the convenience of money storage with easy access, but offer no exceptional perks and no service fees. Consumers usually receive a debit card to use for depositing and withdrawing funds. They can also use the card to make payments in store or online. Checks are purchased by the consumer and offer another method for making payments using funds from the account.

Some consumers maintain higher balances in their checking accounts than others. Because banks want to encourage people to hold their money in the bank, they often offer interest rate advantages to accounts with higher amounts. Many banks have tiered interest rate programs that offer high rates as balances rise. This gives people the opportunity earn money from their money, similar to a savings account, yet still have the convenience and ease of use desired from checking accounts.

Another result of the competitive banking industry is bundling of products and services. Many banks offer their best customers financial benefits for increasing their business relationship with the bank. Thus, consumers that obtain home loans, personal loans, car loans, or open savings or other accounts can sometimes get other perks from checking. Free checks, debit card reward programs, and top interest rates are examples of some of the advantages to preferred banking customers.

Consumers are not the only ones who have options with checking. Businesses have similar choices when setting up a checking account. Business checking options depend on the balances and nature of the business. Higher balance accounts obviously have better opportunities to increased checking benefits. Some banks also offer merchant benefits such as free or reduced price debit and credit card machines and services.

Many business consumers can actually transfer their checking account transactions directly into their financial bookkeeping programs for easier accounting and tax preparation. Businesses and consumers need to carefully review the benefits and costs for each checking account to find their best opportunity.