pen writing a check

Money 101 - What is a checking account?

A Money 101 guide on how checking accounts are different than other deposit accounts

Banks and other financial institutions (FIs) offer checking, savings, and various accounts. Read on to learn more about checking accounts and how they differ from other account types.

Banks and other FIs have been offering checking accounts for hundreds of years. Many historians believe the Romans used a type of check around 350 B.C. But checks didn’t catch on until the early 1500s in Holland. The concept of writing checks and depositing money into an account as a method of paying others spread to England and other European countries soon after.

As banks became more popular as a place to store money, they provided checks to allow their customers to pay for items without needing to carry the money around. A checking account became an easy way for someone to deposit their own money into a bank, keep a record of what they had stored there, and then pay a business for services by writing a check. The concept still works today, even in this age of money moving instantly and using electronic equipment to serve as the “check.”

Checking accounts became very popular for people to deposit the money they needed daily. Checks continue to be used by many people as a method of payment. But how does it work? The check has a few numbers that are key to the process. Checks include the bank or other FI’s routing number, the account number of the person who “owns” the account, and the check number. All those things must be correct on the check for the money to be released by a bank to the person who presents the check for payment.

Over the years, banks have offered many types of checking accounts. Some included interest on the money in the account, others provided free checks, and some banks offered free toasters to customers who opened a new account.

Currently, Peoples State Bank provides our personal customers with four checking accounts to choose from:

Peoples Edge – No monthly service charge, unlimited check writing, and free access to online banking tools.

Peoples Edge Plus – Three great services for $6 per month, including ATM Refunds up to $12 per month**, cell phone protection*, and ID theft expense reimbursement coverage*. The service charge is refunded if you keep $2,500 or more a day in your account*** AND have a $750 or greater direct deposit monthly****.

Peoples Interest – No monthly service charge when your daily balance is $2,500 or greater, and interest paid on your account.

Peoples Balance Banking – A $5 monthly service charge, no overdraft fees, free eStatement or $2 monthly paper statements, and free access to online banking tools.

Peoples offers four different personal checking account options because we know one size doesn’t fit everyone. And for our business customers, Peoples offers six checking accounts to choose from. Our commercial bankers work with customers to help them decide which type of account is best for them.

Checking accounts are meant to be the “workhorse” of your banking accounts. It’s the account you put your money into to make payments on your daily and monthly expenses. That’s one of the significant differences between a checking and a savings account.

Remember, you can learn more about checking accounts from a Peoples personal banker. Stop by a bank location or call 888.929.9902 to speak to one today.

* Special Program Notes: The descriptions herein are summaries only and do not include all terms, conditions, and exclusions of the Benefits described. Please refer to the actual Guide to Benefit and/or insurance documents for complete details of coverage and exclusions. Coverage is provided through the company named in the Guide to Benefit or on the certificate of insurance.

** Up to $12 in ATM fees charged to your account by using a non-Peoples ATM will be refunded each statement cycle. Each ATM fee charged by Peoples for using a non-Peoples ATM will be refunded each statement cycle. The refund will be for the total of the above fees in each statement cycle.

*** Maintain a daily collected balance of $2,500 or more.

**** This requirement may be met with one ACH deposit of $750 or greater or a combination of ACH deposits totaling $750 or greater in the statement cycle (the statement cycle is not the same as a calendar month).

Gary Matz
Personal Banker

Gary is an experienced personal banker at Peoples State Bank. Gary helps customers with answers to questions about their checking or savings products, working within a budget, and ensures his customers have the right products for their personal banking needs.