Log out
Key takeaways
- A checking account offers a secure place to keep your money. It minimizes the risk of theft or loss and ensures that your funds are safeguarded.
- Checking accounts provide easy access to your funds through checks, debit cards, and online banking. It is easy to manage daily transactions, pay bills, or transfer money.
- Many checking accounts offer budgeting tools, will track your spending, and allow you to set up automatic payments. All of which help with financial management.
Roughly 4.5% of American households are unbanked, meaning no one has a checking or savings account. True, you can manage your money without a traditional bank, especially with all the new digital tools popping up. Even so, the checking account remains a cornerstone of everyday money management. It can save you time, money, and simply make life easier.
Let’s take a closer look at why a checking account is not just convenient but remains crucial.
1. Easier to Pay Bills
With a checking account, you can easily write a check, make electronic payments, or set up automatic bill payments, so you never miss a due date. Whether it’s for utilities, subscriptions, or loan installments, having a checking account makes it easy to pay your bills.
2. Able to Get Direct Deposits
Gone are the days of waiting for paychecks in the mail and then having to stand in line (and pay a fee) to cash them. Most employers now prefer direct deposits, where your salary is electronically transferred to your account. It’s faster, more reliable, and you can access your money sooner.
3. Keep Your Money Safe
Keeping large amounts of cash at home isn’t safe or advisable. It could be lost, stolen, or burnt in a fire. A checking account at a reputable bank that is FDIC insured up to $250,000 ensures your money is protected. So if anything happens or the bank fails, the Federal Deposit Insurance Corporation will reimburse your balance up to that amount making your risk close to zero.
4. Quick Access to Funds
With ATMs and bank branches almost everywhere, you can quickly access your money whenever you need it. Moreover, with electronic transfers and online payments, your funds are always at your fingertips. A checking account makes it easy to access your money any time you need it.
5. Debit Card Privileges
A checking account usually comes with a debit card for everyday purchases and easy cash withdrawals. Some even come with rewards or cash-back offers just like credit cards. If you pay with cash for everything you’re missing out on free money.
6. You Have a Paper Trail
When you have a bank account you get a record of all your transactions. This is invaluable for tracking expenses, budgeting, and even resolving disputes with merchants. If any issues arise, you can simply log in and find proof you paid your bill. When you pay for everything in cash, you don’t have this benefit.
Looking for a credit card but aren’t sure which one to choose?
We can help. Learn how to pick the best card for you in just 4 easy steps.
7. Get Online Banking and Mobile Apps
Most banks now offer online banking platforms and mobile apps, making it easier than ever to manage your finances on the go. Check balances, transfer money, or even deposit checks with just a few taps.
New
8. Automated Transactions
You can easily set up recurring payments or transfers so you don’t have to remember every single one. Whether it’s a monthly gym membership or sending a fixed amount into a savings account, automation simplifies your financial life.
9. Easier Money Management
With monthly statements and the ability to see your transactions online, you can easily monitor your spending habits, see your income, set budgets, and make sure you’re living within your means. You may even be able to start saving money!
10. Easy Money Transfers
Need to split a bill with a friend or send money to a family member? Checking accounts often come with quick and easy transfer options – like Zelle, both within the same bank and to other institutions. If you prefer doing things the old-fashioned way, you can easily write checks with a checking account.
11. Potential Overdraft Protection
A lot of checking accounts with online banks offer overdraft protection. This feature ensures you don’t face hefty fees or declined transactions if you overspend. This can be a lifesaver in emergencies since overdraft fees are $35 on average and can be charged continuously.
12. Have a Banking Relationship
Building a relationship with your bank by having a checking account can lead to other benefits. Banks often offer better terms or interest rates to loyal customers, and having an established relationship can make it easier to be approved for a loan or credit card in the future.
Final Thoughts
A checking account is more than just a place to store your money. It’s a tool that can simplify your financial life, provide safety for your funds, and offer numerous benefits that make day-to-day transactions smooth and efficient. If you haven’t already, consider opening one to take advantage of these perks.
