What type of bank account allows the depositor to write checks payable on demand?

A checking account is designed specifically to facilitate day-to-day transactions, enabling the depositor to write checks that are payable on demand. This type of account is highly liquid, meaning funds can be accessed quickly and easily for regular expenses or payments.

When you deposit money into a checking account, you can immediately withdraw it, make electronic transfers, or use checks to pay for goods and services. This flexibility is a key feature, as checking accounts are intended for frequent transactions rather than long-term saving or investing.

In contrast, a savings account primarily serves the purpose of saving money and typically offers interest but often comes with restrictions on the number of transactions. An investment account is meant for purchasing assets such as stocks and bonds and involves a different set of operating principles than a checking account. Lastly, a retirement account focuses on long-term savings for retirement, often with tax advantages, and is not intended for regular transactions like writing checks. Therefore, the checking account uniquely meets the need for immediate access to funds while allowing for check writing.