benefits of a checking account

Posted : February 8, 2018
Last Updated : February 8, 2018
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benefits of a checking account

From transferring funds to managing your budget, a checking account makes it easier to control your finances. Here are just a few benefits of having a checking account.

Convenience

Checking accounts are convenient because they provide you with quick and easy access to your money. Paychecks, income tax refunds, and public assistance benefits can be directly deposited into your account. Direct deposit means that rather than receiving money as a paper check, the money is electronically deposited into your bank account. With a checking account, you also have the benefit of using checks and debit cards to make purchases or payments, rather than carrying and using cash. This can reduce your risk of losing cash.

Cost

A checking account is usually less expensive than other services (e.g., check-cashing services or buying money orders).

Remember, it saves to shop for the best deal when comparing checking accounts; if you don’t like the “price” at one bank, check with another.

Better Money Management

Using a checking account can help you manage your money if you regularly record or monitor your transactions. Transactions are actions you perform with your account, including: depositing or withdrawing money, writing a check or using your debit card to pay bills and make purchases, and having funds directly deposited into your account.

Maintaining a checking account (or other types of bank accounts):
  • Allows you to monitor your spending and make wise spending choices.
  • Gives you a better ability to stick to a spending plan and save money.
  • Helps you build a positive relationship with your bank for future transactions (e.g., getting future credit or loans).
  • Provides a record that you pay your bills on time.

Safety

It’s safer to use debit cards and checks than to carry large amounts of cash. Additionally, you can limit your financial loss if you report lost or stolen checks or debit cards to your bank as soon as possible.

Keeping your money in a Federal Deposit Insurance Corporation (FDIC)-insured financial institution means your money is safe up to the insured limit by law if the financial institution closes for any reason and can’t return your money to you.



Source: PlanningYourDreams.org
 

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