Business

5 Reasons to Open a Checking Account

Many folks insist on carrying cash and working strictly with physical money. Although cash is king, there are plenty of good reasons for having a checking account as well.

More Paying Options

As we continue to skyrocket into the future of tech, digital money becomes more prevalent. Almost everywhere you go, around the whole world, they will accept a debit or credit card. This is essential for those who are always traveling or find themselves needing to spend money online or in the digital world. Online forms of currency exchange help to keep your money protected as well. Having a digital checking account is practical in 2022 and should remain that way. Digital options will continue to give you convenience, safety, and reliability when it comes to your finances. 

Keep Money Safe

As mentioned above, checking accounts offer a way to keep your money safe. When money is secure in a bank, it is insured. And when you have less cash on hand, there is less of a chance that it will be lost or stolen. Cash can draw a lot of attention as well. If you are at the store and pull out your whole paycheck in cash, chances are someone will notice. Most people won’t give it a second thought but it is a way for a thief to potentially profile their next victim. 

Additionally, if your home is ever robbed, the cash will be the first thing they will look for. If you keep most of your money in the bank, then there is no way the thief can get it from you unless they force you to an ATM. However, this put them at a greater risk of being caught so chances are, they will simply take anything of monetary value they can find and leave. 

Direct Deposit Options

If you’re a true lover of having cash on hand, you’re probably aware of the painful check-cashing experience. If you don’t have a bank or credit union in which you have an account, you can cash the check at the bank the check was cut from. If that isn’t an option, you can go to a check-cashing location. The problem with these locations is there is usually a fee. You may be able to cash them at a grocery store as well. There is usually a fee associated with this process as well. 

When you have a checking account, you can set up your paycheck to be deposited right into your account as soon as it’s available. There are even some banks in which it will be deposited up to 2 days before your payday. 

Easier Budgeting

In the days of cash and check writing, it was a bit more difficult to keep track of where all your money was going each month. If you didn’t write it all down in your checkbook or a notebook somewhere, you may not have any idea how much you spend on certain items. Most online checking accounts have a whole system setup where you can see what you spend your money on. It’s ultimately a digital checkbook that sorts your spending into categories. You can see how much you spent on rent, groceries, entertainment, or clothes in any given amount of time. 

When you have a visual of where your money ends up every month, it can help you to better prioritize your spending. If you are spending far too much on dining out each month you can then make the necessary changes to cut back on that spending category. This can help you save or put money towards other needs. 

Inclined to Save More

Having the ability to track where your money is expected to go and where it does go gives you a great advantage in saving money. Many folks don’t realize that they spend as much as they do on certain things. The coffee and bagel every morning before work adds up quickly. You may be interested in saving for a vacation, a college fund, or something special for yourself. 

Opening a savings account alongside your checking is even better. A savings account can help your money grow interest. If you plan on saving for something in the distant future, you can end up with an accrued amount on top of what you have saved. 

There are not many downsides to having a checking account. All of these features are beneficial to you and your financial well-being. It would be an excellent decision that all folks should consider in our current economic climate

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