Are checking accounts outdated for today’s world? Many customers rely on other methods such as cash and prepaid cards to pay for their expenses, purchases, and bills. But there are a number of reasons to open a checking account today, including the safety and security of your hard-earned cash, the added convenience, and the benefits offered by other account features.
We’ll break down these reasons in more detail below.
What Is a Checking Account?
Though the term may seem outdated today, checking accounts give you access to your funds through debit/ATM cards, as well as the ability to write checks. This is different from a credit card where you can only spend the amount of currency you have available in your checking account. Checking accounts also offer more freedom to access your cash than with a savings account, where money is meant to be left alone and accumulate interest.
When you open a checking account, you will receive a debit card that is attached to your account and can then be used for both in-person and online transactions. You will also be able to use your banking information (such as your routing number and account number) to set up transactions like direct deposits and automatic withdrawals for your monthly bills.
Why You Need a Checking Account
Safety & Security – Gone are the days of stuffing cash under a mattress. Banking today is made safe through enhanced security measures that protect your money in ways that no other option can.
Checking accounts give consumers a variety of tools and resources to protect both their money and their identity. Customers who have been hesitant to adapt to new technologies like online shopping can rest assured that their debit card purchases are entirely safe and the money in their checking account is completely protected.
In the event of theft or fraud, your financial institution should ensure that you are completely covered from any liability. In addition, most bank accounts are FDIC insured and safe from any loss up to specified dollar amounts. Checking accounts with credit unions are usually protected by the National Credit Union Administration (NCUA), which is also backed by the federal government and insures individuals up to $250,000.
Convenience – Checking accounts give consumers several easy ways to pay their bills instead of having to make in-person visits and deal with cash, money orders, or prepaid cards.
With a checking account, account holders can mail a check, use their debit card over the phone or online, and even set up automatic payments through their bank or credit union’s website. Whether you use checks, Apple Wallet, or your debit card, daily transactions and purchases are made simple and easy with the payment methods provided by a checking account.
The same goes for receiving payments. With a debit card, you can set up your account to receive funds from third-party payment platforms such as Cash App, PayPal, and Venmo. Best of all, you will be able to set up your paychecks to arrive via direct deposit instead of waiting to receive a paper check that must be cashed or deposited in person. Checks can also be deposited digitally through mobile deposit if your financial institution has incorporated this feature into its app.
Detailed Records – Having a checking account means that you have a permanent and detailed account of all your financial transactions. This information helps with everything from budgeting to proving your income.
There are many occasions where you may need to provide bank account statements in order to verify your income, monthly spending, or address. Without a checking account, providing this information will be difficult, if not impossible.
In addition, having a checking account also helps you keep track of your spending and follow a budget. Many banks and credit unions offer specialized online budgeting tools to help with this as well.
Financial Benefits – Depending on where you open your bank account, there may be a variety of benefits you can receive for being an account holder. For example, many credit unions offer dividend payouts for their members, meaning that you will receive an annual payment simply for having a checking account with them. Some financial institutions even offer their customers the opportunity to earn interest on the funds in their checking accounts.
Ready to Apply for a Checking Account?
At Telcoe FCU, we offer several great banking products, including checking accounts that are designed to meet your financial needs at every stage of life. Members enjoy lower fees, better rates, and excellent personal customer service.
Visit the link below to learn more about the key features of every Telcoe checking account, including online bill pay, fee-free ATMs, mobile deposit, mobile banking, and online banking.
11 Must Have Checking Account Features