An account targeted at investors that allows them to write drafts and make deposits. The sizes of the transactions are completely flexible. Typically, checking accounts pay very low interest rates, if they pay anything at all; therefore, they arenÂ’t useful as a way to save money. Banks, credit unions, and savings and loan institutions offer checking accounts. Checking accounts are insured by the U.S. government up to $100,000 per account through the Federal Deposit Insurance Corporation (FDIC). Interest earned on checking accounts is taxable. They are useful for keeping ready cash reserves.