The Importance Of A Checking Account
A checking account is paramount to anyone seeking financial stability. A checking account allows you to put your cash or checks into one account. It enables you to write checks, withdraw cash, make purchases online, or use your debit card to avoid using cash. Checking accounts are the most popular for individuals and businesses handle income and expenses. The services of checking accounts are numerous and convenient.
In a bank account, your money is insured and protected by the FDIC (Federal Deposit Insurance Corporation) from fire, theft, and other dangers. There is no need to worry about your money being “out of your hands.” Banks are the safest place for your funds.
In addition, checking accounts save you the nuisance of paying for things in cash. While cash may be easy for small purchases, you may want to write a check for more expensive purchases, such as medications, groceries, and utilities bills. In fact, some insurance and utilities companies require payment by check or money order. Your own account will save you the fees necessary to purchase a money order and the time to obtain one.
Many employers offer the convenience of direct deposit. As the term signifies, your paycheck will be directly deposited into your checking account on the pay date. No longer do you have to worry about getting to the bank on time to ensure that there is money in your account. All of your transactions, including deposits, withdrawals, and payments, can be viewed on your monthly statement, issued by mail or e-mail. This allows you to easily track your money and create a budget that suits your financial status.
Perhaps the most convenient feature of checking accounts is the debit card. The debit card acts as a credit card; however, the money is deducted directly from your account. There are no monthly bills to pay and no steep interest fees. With the card, there is no need to even carry cash anymore since most stores accept debit cards. Should you lose your wallet, there is no need to worry about your money, all you need to do is call your bank and they will cancel your current card and issue you a new one. The debit card is also a convenient way to purchase merchandise online without leaving the comfort of your home or to pay your bills without worrying about sending a check on time.
If you are a small business owner, online checking accounts are readily available to ease a lot of your day to day transactions. These accounts may offer features that are extra and may require a monthly fee. However, these features are convenient and easy: such as accepting electronic payments or sending electronic payments to vendors or paying your employee’s salaries straight into their account. Many of these online accounts will also come with a number of planning tools and software to help you manage your account with ease. Checking Accounts are important to anyone who wishes to make personal finance simple and convenient. The features offered by banks allows you easy access to account so that you can maintain financial stability.