You could hide your money under your mattress or pay cash for all your purchases. But in today’s digital online world, most of us use a checking account.
Credit unions and banks offer checking accounts, giving you dozens of options. To select the right fit for you, choose a local credit union or bank where you can build a relationship with people who are vested in your community. With this flexibility, you’ll find an account that meets your needs and preferences all while affording you checking account advantages and perks.
10 Checking Account Advantages
Whether your financial landscape is well-established, or you’re just beginning to build financial literacy, there are many checking account advantages you’ll experience by opening an account.
Checking accounts provide numerous benefits that improve your life and financial health no matter your age. Continue reading for ten checking account advantages.
1. Head Start On Money Management
One of the most significant checking account advantages is its ability to teach young adults about money management and building financial literacy.
Open a joint checking account, and your child can learn to write checks, pay bills, balance the checkbook, and plan for future expenses. As you offer guidance and prevent major money mistakes, you invest in your child’s financial education and literacy.
A SmartStart Checking or other checking account designed for teens also allows your child to build a relationship with the credit union or bank. Because of this relationship, he or she receives access to financial health classes, seminars, and other financial tools like car loans and savings accounts.
All of these tools prepare your child for adulthood. When you remove your name and access from the account, you have confidence that he or she is ready to manage money successfully.
2. Establish Credit
To build or improve your credit score, maintain your checking account.
Keep your account balance above zero, avoid bounced checks and pay your bills on time. These actions demonstrate to lenders and credit reporting agencies that you’re responsible with money.
3. Save Money
Check cashing service fees, ATM usage fees, and missed bill payment fees add up. Use checking account services like direct deposit and automatic bill pay to avoid fees and save money.
You can also open a free checking account. With this account, you maintain access to all the money in your account since you won’t owe a monthly fee or per-check fee.
To ensure you save money on your checking account services, read the Terms and Conditions page of the contract. Credit unions and banks are required to be transparent about their fee schedule, and you should verify that you understand all the details before you open an account.
4. Earn Interest
Open a high-yield checking account, and your money will grow interest.
The minimum balance for an interest-earning account can be very high. However, the interest and other perks of an interest-bearing checking account offer numerous advantages including the ability to grow your account balance with minimal effort.
5. Secure Your Money
The majority of checking accounts are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA)
With this insurance, up to $250,000 in your checking account is protected which means your money is safer in your checking account than under your mattress.
Additionally, leaving your cash in an account means it’s less likely to be lost or stolen. You no longer have to hope that envelopes of cash will arrive at your utility or mortgage company. And if your checkbook or debit card is lost or stolen, simply stop payment or open a new account rather than face financial ruin.
A checking account also offers secure online banking. Pay bills, transfer money between accounts or deposit checks with confidence because your financial institution has implemented measures that secure and protect you and your money.
6. Receive Direct Deposit
Instead of receiving a paper check from your employer, pension provider or other benefits provider, take advantage of direct deposit.
Your money is instantly deposited directly into your checking account. You gain faster access to your money, save time and avoid the hassle of visiting your credit union or bank every time you get paid.
While you still want to review your pay stub and check for errors, this checking account advantage enhances your convenience to the money you have earned.
7. Create An Electronic Trail
Pay a bill with cash, and you have no proof of payment during a dispute.
On the other hand, a canceled check gives you a proof of payment. Simply show the canceled check or print a copy from your online statement to verify that you’ve paid your bills and fulfilled your obligations.
8. Gain Accessibility
In addition to writing checks, you can manage your money in your checking account via the branch, ATMs, website, and mobile site.
Multiple points of access allow you to conveniently and quickly deposit or withdraw money when you need it. Perhaps this is one of the best checking account advantages because it enables you to save time while gaining peace of mind.
9. Enhance Your Financial Portfolio
When you open a checking account, you get access to additional financial services provided by the credit union or bank.
Services can include loan discounts, access to Certificate of Deposit accounts and financial planning tools. These and other services from accounts like Cha-Ching! Checking enhance your ability to manage your money, build financial wealth and prepare for the future.
10. Future Planning Tool
Your checking account can help you budget your money, make on-time bill payments and save for big purchases. These actions play a big role in improving your future financial outlook.
With a Savvy Senior Checking account, for example, earn preferred interest and a Certificate of Deposit rate bonus, two of the many checking account advantages you earn as you use your account to plan for a healthy financial future.
Making The Most Of Checking Account Advantages
To improve your financial health, open a checking account.
Checking accounts offer advantages that make life easier now and allow to manage your money wisely into the future.