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What Is a Checking Account?

A practical overview of checking accounts and how much cash you should keep in them.

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Checking accounts optimize for daily spending and bill payment, not long-term growth of idle cash.

Primary role

Use checking for payroll inflows, card spending, and recurring debits that require immediate liquidity.

Balance strategy

Keep one month of essential spending in checking and move surplus to high-yield savings.

Takeaway

Checking is an operations account. Savings is where idle cash should live.