If you currently do not write checks and mostly make your payments through a debit or credit card, you might wonder why you should consider enrolling in a free checking account. However, there are many ways that a checking account can be very helpful.
1. Easily Receive Payments
If you receive payments through direct deposit, you may have the payments deposited to a savings account. However, your savings account will likely have a limit on how often you may withdraw money. Checking accounts do not have this limit, and you can access your funds immediately. Free checking accounts are also easy to access through online apps.
More employers pay through check or direct deposit than through cash. If you are paid through a check, a free checking account will save you money in check cashing fees.
2. Better Organize Your Finances
If you are paying down debt, you should still maintain a savings account. However, if you keep your money in a savings account to pay down debt later, you may find yourself eating your savings more quickly than you would prefer.
You could keep and organize your money at home, but it is risky to keep money at home since there might be a fire or a burglary. You may also simply lose your money when it isn't in a checking account.
3. Control Your Spending
With a checking account, you can more easily set aside money for spending on unnecessary expenses. That way, you will be able to improve your financial situation. Using a checking account will establish a paper trail that you can use to understand where your money is going.
4. Resolve Disputes
By having a better paper trail, you may find it easier to resolve disputes. For example, if you make a payment and then the recipient of the payment claims they did not receive it, you'll have an easier time proving that you made the payment with a checking account.
5. Use Features Such as Bill Payments
While digital wallets can be easier to use, free checking accounts will often come with additional features such as bill payments and direct deposit. Some services will only allow you to pay using echeck and you may need a checking account to do so. Many checking accounts also come with credit score monitoring that are often not available with digital wallets.
To learn more about the benefits of a free checking account, contact a company like FCCU - First Community Credit Union.