Categories: General Tips
Checking accounts might seem outdated with all the online payment options, but this financial workhorse is a must-have for anyone who has money at their disposal. A checking account is a powerful tool that not only houses your money, but helps you budget, pay bills on time, and save for bigger purchases.
Advantages of having a checking account:
Establish Good Habits
You know how they say the best defense is a good offense? The same thing is true of your financial game plan. Establishing good habits early is critical to long-term success, and opening a checking account is the perfect first step. A checking account helps you organize your finances and pay bills on time. Checking accounts help you keep a budget on track and, since you can connect online or via your mobile device 24-7, access to your account information is very convenient. Once you successfully manage a checking account, other investment and financial opportunities will be easier for you to access and understand.
Direct Deposit
Direct deposit of your paycheck is just what it sounds like — instead of being handed a check, your pay will go automatically into any accounts you want. This saves you a trip to the bank to deposit your check and means that even if you’re sick or not in the office on payday, you still have immediate access to your money.
Secure Transactions
Having your checking account at a solid financial institution, like an NCUA-insured credit union, ensures that your transactions are secure. You can have confidence your money and information is safe because your financial institution has implemented measures that secure and protect you. You’ll also have peace of mind knowing you can visit an actual branch and financial team anytime you need help solving a problem.
Debit Card Convenience
Having a checking account can also mean you’re able to get a debit card, which can help you manage your money and make simple transactions easier. Debit cards are perhaps one of the most convenient financial tools you can use. Using a debit card means you don’t have to carry around large sums of cash, and your accounts are protected in case your card is lost or stolen. As long as you know how much you have in your account (i.e., how much you can spend considering your pending payments and cash flow situation), using a debit card attached to your checking account can make your life much easier.
Enhance Your Financial Portfolio.
Typically, opening a checking account is the first thing you do with your new financial institution. And opening that door often leads to many other openings for you. By having a checking account, you can take advantage of additional financial services provided by the credit union or bank. You might be eligible for loans, low APR credit cards, access to share certificates/certificates of deposit, and even be able to work with their financial planners. Having access to a full suite of financial tools enhances your ability to manage your money, build financial wealth and prepare for the future.