A checking account is an important bank account that can keep your money safe and accessible. You can make easy deposits and withdrawals from your checking account to pay off debts, credit card balances, and to write checks. A checking account can prevent you from being penalized with high service fees that can arise from not having the minimum balance or having too many transactions within a given period of time. The interest rate of a checking account is generally lower than that of a savings account, but you can access you money more freely which is often not the case with a savings account.
Checking accounts have evolved and become more sophisticated over the years. They are a great way to manage your money if you know what you are doing. You should make sure to learn all about the way your checking account works.
Things to Look for in a Checking Account
When you are looking to sign up for a checking account it is important to know what the bank is offering. Not all checking accounts are the same so make sure to read the fine print and have an understanding of how to best utilize your checking account. Some of the things that you should look for when signing up for a checking account include:
- Convenience
- Look for online and mobile banking options so that you can access your money from anywhere at anytime
- Ability to transfer money between bank accounts
- Access to ATMs
- Direct deposit of your paycheck gives you easier access to your money
- Time Savings
- Automatic bill payment options
- Scan and deposit checks directly from your mobile phone
- Direct deposit set up for paychecks
- Easily view and monitor account balance
- Easily transfer money from one account to the other
- Send money electronically to pay bills or send money transfers
- Security
- Peace of mind that your money is safe
- No longer have to risk carrying cash around
- A call to customer service can prevent theft from occurring from your checking account in case your wallet is lost or stolen
- Get notifications from your bank when your checking account balance has fallen under a certain amount
- Updates when a withdrawal or debit transaction has been subtracted from your account
- Money Savings *Keep in mind that you may have to keep a minimum balance at all times to reap these benefits.
- Paying bills online can allow you to pay them off right away without having to worry about late fees
- Waiver of monthly checking account fees
- Free bill pay
- Earn interest
- Free personal checks, travelers checks and money orders
- Preferred rates on loans
- Unlimited transactions
- Flexibility
- Mobile banking including deposits, account transfers and bill payments
- Easy access to ATMs
- Direct deposit
Researching checking accounts and what they offer can ensure that you are choosing the right one for your personal needs and financial goals. It can help you to establish your credit which can benefit you when it comes time to purchase a home or car. A checking account is very useful when used properly so take the time to know all about your checking account.