For most people, a checking account acts as the mothership of their financial life. Paychecks are deposited, bills are paid, cash is withdrawn, and debit cards are connected—all from this one place. Essentially, checking accounts are the home base for our everyday financial activity.
But what are the benefits of a checking account? In this blog, we’ll explore the top 10 checking account benefits so that you can take full advantage of them.
Top 10 Checking Account Advantages
From earning interest to accessing online banking tools—these are not the same checking accounts your grandparents once had. By leveraging checking account benefits, you can manage your money more efficiently and improve your overall financial wellness.
Let’s deep dive into the top 10 checking account benefits so that you can start taking advantage of them today!
1. Establish Credit
Checking accounts are a great way to help establish or build credit. To do so, you need to maintain any required minimum balance, avoid bouncing checks, and pay your bills on time.
This will show lenders and credit reporting agencies that you’re responsible with your finances.
2. Keep Your Money Safe
Rather than keeping a lot of cash hidden in a drawer or carrying it in your wallet or purse where it could be lost or stolen—your money is just plain safer when it is deposited in a checking account. Plus, with online banking, you can monitor your account balance at any time so that if something looks amiss, you can address it quickly.
What’s more, if you open a checking account at a credit union like Belco, your money is federally insured by the National Credit Union Association.
3. Give the Kids a Head Start on Money Management
A youth checking account can help you teach your kids money management skills at a young age, building their financial literacy during their formative years.
These special joint accounts allow parents to have oversight of their child’s account and offer an opportunity to teach kids how to write checks, balance a checkbook, purchase items, and maintain a budget. Then when they turn 18, the kids already have a solid financial education, setting them up for financial success and helping them avoid costly mistakes.
Plus, some youth accounts offer incentives. For example, through Belco’s Xtreme Teen Savings Account, a teenager can earn $1.00 for every “A” grade they receive in a core subject. Talk about incentivization—a teen could add up to $5 extra dollars into their account per marking period just for being an excellent student!
4. Earn Interest
When you open a high-interest checking account, your money can grow substantial interest. But keep in mind that with any type of interest-bearing account, there is typically a higher minimum balance requirement—so make sure you can maintain it. Since these accounts offer competitive interest, they can be a great way to grow your funds with minimal effort.
5. Avoid Fees
Check-cashing service fees, ATM usage fees, and missed bill payment fees all add up. But if you leverage checking account features like direct deposit and automatic bill pay, you can avoid fees and save a significant amount of money.
You can also open a free checking account, which does not charge a monthly service fee or a fee for every check you write.
6. Enroll in Direct Deposit
Instead of having to go to the bank or credit union to deposit a paper check from your employer, pension provider, or other benefits provider—you can have the checks 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.
7. Create an Electronic Paper Trail
When you pay a bill with cash, you don’t have proof of payment should there be a dispute.
On the other hand, a canceled check provides 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. Financial Planning Tools
Your checking account can help you plan ahead financially by creating budgets, paying your bills on time, and saving for big purchases. These actions play a big role in improving your future financial outlook.
Our 50+ Interest Checking account, for example, is designed for our members who are 50 years and older. This account allows them to earn competitive interest without having to maintain a minimum balance or pay monthly service fees—helping them grow their funds easily as they approach retirement years.
9. Enhanced Accessibility
When you enroll in online or mobile banking, you can monitor your checking account 24/7 from the comfort of your office, home, or even your car with any device that has an internet connection.
Through online and mobile banking, you can deposit checks and transfer funds remotely—without ever needing to step inside a financial institution. This might be one of the best checking account advantages because it enables you to save time while knowing that your transactions are secure.
10. Enhance Your Financial Portfolio
When you open a checking account, you’re also opening up a world of financial services provided by the credit union or bank.
These can include discounts on home and auto loans, access to certificate of deposit accounts, the ability to open individual retirement accounts (IRAs), and financial planning tools. Whether in combination or separately, these additional benefits enhance your ability to manage your money, build financial wealth, and prepare for the future.
The Belco Checking Account Advantage
At Belco, our mission is to set our members on a path of financial wellness. Since 1939 in central Pennsylvania, we have been helping our neighbors improve their financial health to reach their financial goals.
You are eligible to join if you live, work, worship, volunteer, or attend school in Adams, Cumberland, Dauphin, Lancaster, Lebanon, Perry, or York counties, PA. You may also qualify by being a direct relative of a current member.
Since we know our members’ financial journeys are unique, we offer many types of checking accounts ranging from our Free Checking Account (no monthly service fees, no minimum balance) to our Premier Checking Account which offers a highly competitive interest rate—and other account types in between.
All of our checking accounts offer online and mobile banking, direct deposit, and overdraft protection. Click below to learn more!