The Differences Between Personal and Business Checking Accounts

There are several differences between personal checking accounts and other types of checking accounts. Most personal checking accounts are not linked to a particular bank, though they are usually given a unique number that is used for identification purposes. Personal checking accounts are often used for day-to-day transactions, including purchases, loans, and ATM transactions. But not all personal checking accounts provide the same services. Some feature higher interest rates, while others offer fewer no-interest period transactions. If you are in need of a personal checking account, it is helpful to compare different accounts so you can choose one that meets your banking needs. Original Site
There are several features available in personal checking accounts, including ATM overdraft fees, which are charged on any overdraft transactions (such as checks written from an ATM machine), and courtesy overdraft fees if the account holder overdraws a line of credit. Some banks may offer additional services, such as bill payment and auto attendant services. If the account holder opts for a no-charge ATM overdraft option, this option may not apply to some ATM locations, depending on the institution’s terms and conditions. Also, some banks may limit the number of overdraft transactions allowed per month or year. Finally, some personal accounts allow the use of credit card for online transactions; however, these options may not be available with some ATM locations.
Business checking accounts, on the other hand, are used for conducting cash transactions for more substantial business transactions. Business checking accounts are often chosen when the owner of the business owns a majority share of the company. Because business checking accounts usually have higher overdraft charges than personal checking accounts, these transactions are less advantageous for the business owner. However, with business checking accounts, business owners can avoid incurring overdraft fees on their personal accounts.