What is a Checking Account?

A checking account is a bank account designed for your everyday transactions. Checking accounts make managing your money more accessible with debit cards, checkbooks and mobile banking.

Here, you'll learn more about what a checking account is, how it works and the types of checking accounts available to you at Citi.

What is a checking account used for?

Checking accounts are used for deposits and withdrawals. They are a place to keep and manage your money.

Most people use their checking accounts for money they plan to spend in the short term, such as to pay utility bills or rent. You can access your money at brick-and-mortar locations, if your bank has them or by using a debit card. You can also conveniently send money with an ACH transfer, wire transfer or mobile payment feature.

How do checking accounts work?

Financial institutions like Citi offer checking accounts so you can make deposits and transact with your funds. You can use mobile banking, online banking, a debit card, and direct transfers to send your money where it needs to go. Paper checks are typically no longer required to pay most bills but can be used with checking accounts when you need them.

For example, if you want to send your friend money for helping you move into your new apartment, you can send them an instant payment from the Citi Mobile^® App¹ without having to go to an ATM or bank branch.

To ensure you have funds available when you need them, you can make cash deposits at your bank, utilize mobile check deposits¹ or set up direct deposits from your employer.

How much money should I keep in my checking account?

It can help to have extra funds beyond your usual expenses in your checking account to provide a cushion. The additional money in your account can ensure you're able to pay all your bills without having to worry about how much money is available.

It's also good practice to check your bank account regularly, so you always know what's coming in and going out. You don't want to have a transaction declined because of a previous withdrawal you forgot to account for.

How to choose a checking account

It's wise to consider factors like minimum deposit requirements and fees when choosing a checking account. When you understand what you need in a bank account, you can find the account that best aligns with your lifestyle. Here are a few other things to look for when choosing an account:

Do you want to bank online or in-person?

For convenience, you may prefer a checking account that offers online and mobile banking. Online banking gives you easy access to your account 24/7, and you can automate paying your bills and transfers to your savings account.

If you prefer to use cash, write checks or make your deposits in-person, opening a checking account with a bank that has nearby brick-and-mortar locations is a good choice.

Citi combines both digital and in-person banking by offering online and mobile banking experiences as well as a large network of fee-free ATMs.²

What other features and benefits does a typical checking account offer?

Beyond deposits and withdrawals, checking accounts can come with many other features and benefits. When opening an account, note what features and benefits are available and how they line up with the way you prefer to use your money.

Citi checking accounts offer ways to avoid monthly service fees if you meet certain conditions, debit card access, mobile check deposit¹ and more. There is no minimum deposit to open a checking account with Citi.

Learn more about opening a Citi checking account to take advantage of features and benefits like mobile deposits¹ and fee-free ATM² access across the U.S.

1. Citi Mobile App and Mobile Check Deposit. Regular account charges apply. Citibank does not charge you a fee for using the Citi Mobile app or the Mobile Check Deposit service. However, you must have a Web-enabled cell or smartphone to use the Citi Mobile app or Mobile Check Deposit service and charges from your wireless carrier may apply. Citibank is not responsible for products and services offered by other companies. The Mobile Check Deposit service is for personal checking accounts only and is subject to eligibility. Deposit limits and other restrictions apply. 

2. Claim is based on locations in the United States where customers can make cash withdrawals with no surcharge (usage) fee by the ATM operator. Citibank customers can get cash, get information and make transfers between their eligible linked Citibank accounts with no surcharge fee when they use their Citibank^® Banking Card at ATMs in the U.S. located at Citibank branches, ATMs at select retail store locations, and ATMs participating in the MoneyPass^® Network; regular account charges apply. ATMs in retail stores and at other non-Citi locations are not owned or operated by Citibank and offer fewer functions. Use the Citi Worldwide ATM/Branch Locator on Citibank Online or the Citi Mobile^® App to find the nearest ATMs and branches, including non-Citibank ATMs in the U.S. with surcharge free access. MoneyPass is a registered trademark of Fiserv, Inc.

Disclosure: This article is for general educational purposes. It is not intended to provide financial or tax advice. It also is not intended to describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products. Please consult your tax advisor with any tax questions. Citi is not a tax advisor.