9 Benefits Of A Checking Account
Did you know 94% of adults who live in a house have access to a checking account? Every time you swipe your debit card, more than likely it is accessing a checking account. A checking account allows you to deposit and withdraw money for everyday expenses with minimal limitations. So, what else can a checking account do for you?
1. Simple Setup
Most financial institutions can open a checking account for you within minutes after asking a couple of questions, either online or in person at a branch. The main thing you need to do is pick an institution that is going to help you meet your long-term financial goals and offer the best perks for being a member.
2. Easy Bill Pay
Monthly bills like utilities can be set up with automatic bill pay using your checking account. By linking your checking account to an automatic bill pay system, your money is automatically withdrawn on a certain date each month to pay the companies that bill you. This way, you will never miss a payment!
3. Keeps Your Money Safe
Almost everyone has some type of checking account. You know why? It’s safe and secure. Deposits up to $250,000 are backed by government agencies like the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA). Essentially, if your chosen financial institution went belly-up, you won’t just lose your life savings. Instead, your money is insured as long as your financial institution is insured by one of these agencies.
4. Access Anywhere, Anytime
In a fast-paced world, you need your money with you at all times. As long as you have a debit card linked to your checking account, you can have easy access to your money. With a simple swipe of your debit card, money will be automatically withdrawn from your checking account to pay for your goods and services. Easy peasy!
5. Direct Deposit
The most common way for employers to pay their employees used to be cutting checks and handing them out every Friday. Then, the employee would have to make time to visit their local branch and get it deposited or cashed to have access to the funds. As you can imagine, this took a lot of paper and work, but it is partly where the name checking accounts came from.
Today, most of us give our employers our financial institution’s routing number and our personal checking account number - which is also the information at the bottom of your personal checkbook. Every payday, your week’s wages are automatically deposited into your account, ready for whatever you need them for!
6. Online Tools
Technology improves every day, even at your financial institution. Through your financial institution’s website or mobile app, you can sign in and see real-time, up-to-date information about your accounts, including your checking account. Features include:
- A continuous record of deposits, withdrawals, and transactions so you can always see where your money is coming and going
- Transfer funds from one checking account to another
- Find your account details, such as your account number, dividend interest rate, etc.
- And more!
7. Earn Rewards
Financial institutions want YOU to use their checking account the most, so many have reward programs attached to them to incentivize you to use it as much as possible. With the right checking account, a swipe of your debit card can earn points, which can be redeemed for cashback, merchandise, and more. Choose your checking account wisely!
8. Organized Transactions
Have you ever thought about starting a budget, but didn’t know where to start? Start with your checking account. Since your checking account is a history of your income and spending, you can go through and easily track and record your transactions. Once you get a better overview of your lifestyle, you can identify areas where you can cut back on spending and where you can save more. Learn more about starting a budget and how your checking account can help here.
9. Financial Services Stepping Stone
Once you have a checking account, the world is your oyster. Pro tip: at credit unions, you will likely be required to open a savings account before opening other accounts (including checking accounts) with them. It’s the first step towards building a savings, completing home improvement projects, purchasing a vehicle, etc.
A checking account is for everyone: you, your spouse, your child, etc. Once you open one, you have the financial freedom to spend and save however you wish!