A checking account is a typical bank product that is commonly used for business transactions. Normally, it is used as a payment method using a check when you are required to pay a large amount of money.
It is harder to apply for a new checking account because it has higher initial deposit and maintaining balance compared to a regular savings account. Normally, it has also an ATM or debit card which you can use to withdraw money.
Checking Account Fees
Like savings account, there is no fee in opening a new checking account but most banks charge to their customers the checkbook. There will be no also monthly or annual fee as long as your account is above the maintaining balance.
Keep in mind that when your account has no sufficient funds and you issued a check, and after that the payee deposited the check, the bank will give you penalty which is high normally at the range of P2,500 and up.
Interests on Checking Account
Checking account also earns interest like a normal savings account. The interest will be directly paid to your balance when the bank pays the interest monthly or annually.
Cautions on Issuing a Check
There are lots of cases on bouncing checks. It happens when a check is deposited by the payee and there’s no enough fund or balance in the checking account. If you issued a bouncing check, you can be charged a criminal case and you can go to prison.
How to Apply for Checking Account?
Basically, most Philippine banks require the applicant to have a savings account in them before they approve your checking account application. Therefore, it is better to apply first a savings account and then after 3-6 months you may apply for a savings account. There are some application forms you need to fill up and after that deposit the money for the initial deposit of your account.
However, in some rare cases, the bank may allow you to open a checking account even if you have no savings account in them but you must apply both at the same time.