Checking accounts are the most common part of your basic financial system. It’s where we’ve learned to store our money since society rendered mattresses obsolete for that purpose (unless you are in a line of work that shall remain under wraps). In case you aren’t sold on the importance of having a checking account, these next few points will help put things into perspective.
They Are 100% Liquid
When it comes to withdrawing your money at an ATM or at an odd hour of the day, you can access your funds with no penalties, no waiting periods or questions asked in comparison to savings accounts or cashing your weekly check. Of course, you don’t earn any money with the money in your checking account but it sure beats carrying loads of cash around 24/7.
Besides that, your checking account is convenient to link as your direct deposits to skip bank visits altogether, to connect Venmo or Cashapp and, pay or receive money from just anyone, anywhere and lastly to pay bills online and avoid snail mail. The flexibility and convenience of your checking accounts are the names of the game.
Traps To Avoid
Banks don’t gain much on holding your money for free or a few dollars a month so, they’ve created a bunch of hidden fees and tricky ways to generate revenue. The most novel minefield is the overdraft fee, charged to your account when you spend more than what is rightfully yours. The bank will allow the transition but charge you a fee for covering the costs.
A tip? If you run the risk of overspending every month, remove the overdraft option and avoid paying the bank an avoidable fee.