Checking accounts are something everyone can benefit from having, and if you’ve yet to open a checking account, whether from bad past experiences, or just lack of interest, here are a few benefits that you need to consider.
The Benefits Of Opening A Checking Account
- Protection. Cash can be risky to carry around, and even when large amounts are kept in the ‘safety’ of your home things can go wrong. While we certainly don’t want to consider burglaries or natural disasters, we have to consider the worst case scenarios when it comes to protecting our finances. Banks on the other hand are insured by federal institutions, meaning they must be liable for up to $250,000 per client should any damages occur. This means your deposits are protected and can and will be returned to you should something ever occur, however unlikely that is.
- Convenience. When you open a checking account you no longer have to worry about what to do with your check each payday. While check cashing services are great in a pinch they also will take a percentage as a fee, and depending on the amount of the check this can be significant. Also who wants to pay to get their own hard earned money? When you open a checking account you don’t have to worry about these fees, and you can even have your funds direct deposited each pay day. This saves time, hassle, and most importantly money!
- Paying Bills. Rent and utility payments can be a pain if you don’t have a checking account. While many bills can be paid at store service counters, being able to quickly pay over the phone or online can not only speed up the process, but it can be more secure than sending payments or paying through a 3rd party. With a checking account you can even write checks if you don’t want to pay online, this adds security because only they can cash it. So even if the check is lost in the mail you won’t have to worry about losing money. Additionally, some banks will even allow you to set up auto payments through them, or straight through the company you’re paying. This can help cut the time spent paying bills down to almost nothing.
- Debit Cards. Unlike credit cards, debit cards draw funds right from your account. This ensures you won’t rack up debt, or purchase something you can’t afford. These cards help keep the cash you carry down to a minimum so should you ever lose or misplace your wallet you won’t have to worry about losing hundreds in cash. Additionally, in the event that you do lose your card you can simply call your bank and have them freeze the card so that it can’t be used. Overall, this adds not only convenience, but extra security that helps keep your money as safe as possible.
- Budgets. Since purchases made with a debit card automatically appear on your credit statement or online bank account management page, you can easily track your spending. Some even offer handy pie charts that show where your funds are going. This can help you plan out your budget better and ensure that you’re never caught without what you need. This can also help you catch suspicious activity or double payments so that you can quickly contact your bank and remedy the situation.
When you open a checking account you are gaining many benefits that can help make your day to day spending much easier. From grocery purchases, utility payments, and cashing your checks, everything is easily managed and handled. Additionally, you won’t have to worry about losing funds, or having money stolen. Since everything can be easily tracked you can feel confident that your finances are secure.