5 Reasons to Open a Checking Account

5 Reasons to Check Your Bank Account Every Day - Experian

Did you know that 17 million Americans don’t have a bank account?

There are various reasons for this, including the belief among some millennials that they don’t need a bank. While distrust of financial institutions is common these days, it doesn’t mean you should go without a checking account. Having one is crucial for managing your finances effectively!

Here are 5 reasons why having a checking account is essential.

  1. A CHECKING ACCOUNT PROVIDES PROOF OF PAYMENT Checks offer a clear paper trail, providing written proof that you’ve made a payment. Each check you write that clears your account is recorded in several places. This proof is important for tax purposes, especially when making tax-deductible charitable donations, and for payments made by mail. You can find these records in your bank statement, checkbook, carbon copies (if you use duplicate checks), and printable images of cleared checks accessible through online banking. Keeping these records handy can be helpful in case of fraud or duplicate charges.
  2. CHECKS PROVIDE MORE SECURITY For older generations, paying by check is safer than cash when shopping by mail. Cash can be lost or stolen without a trace, whereas a check provides a paper trail that deters theft. If you send money for special occasions like holidays or birthdays, checks are safer and less expensive than money orders or cashier’s checks.
  3. PAY BILLS (OR PEOPLE) EASILY, AND GET PAID EASILY Most checking accounts now offer free bill pay, allowing you to manage and pay all your bills online, reducing paper clutter. You can also make P2P (person-to-person) payments for free through many banks, making it easy to pay friends or relatives. Checking accounts come with debit cards for online purchases and direct deposit for your paycheck, eliminating the need to physically cash checks.
  4. EASE OF ACCESS WITH ONLINE BANKING Instead of keeping cash in an envelope or a bag, which can quickly become chaotic, having a checking account with online access allows you to manage your finances easily. Many people link their accounts to financial management tools like Mint.com or Personal Capital, simplifying money management.
  5. NO TRANSACTION LIMITS Unlike savings accounts, which typically limit you to six electronic transfers per month, checking accounts have no such restrictions. This flexibility is essential for frequent transactions. Having both checking and savings accounts allows for direct transfers, helping you save money more effectively and avoid keeping cash lying around without a purpose.

Overall, having a checking account is essential for managing your money quickly and efficiently. Online-only banks often offer the most convenience and the fewest fees, making them an excellent choice for your banking needs.

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