While the majority of people are not writing checks every day, most adults in the U.S. still have checking accounts. Checking accounts provide an easy way to manage your finances, and there are many types available that can work for you no matter your savings goals.
They are more than just a place where money goes in and comes out—they can help you keep your finances safe from theft, provide an easy way to monitor your expenses so you know exactly what you’re spending your money on, and you can easily access these funds from anywhere in the world with a trusty debit card. Here are five reasons having a checking account in 2023 is absolutely vital.
Keep Your Money Safe
One of the main benefits to keeping your money in a checking account is that it keeps it safe from theft. Of course, it is always possible for someone to steal your identity or hack into your bank account, but almost every financial institution offers some sort of protection in case that occurs. Technology has advanced to a point where the bank can automatically tell if a transaction did not come from you, and if not, they do a deeper investigation into fraud. If money was taken from your account fraudulently, it will almost always be reimbursed. With cash, none of this process is possible—if it’s gone, it’s probably gone forever.
Convenient Access to Funds
Checking accounts almost always come with a debit card and the ability to have a checkbook. While writing checks is becoming much less popular, it’s still important to keep a few checks around for emergencies, like home contractors who may not accept credit cards.
A debit card works everywhere a credit card does, and gives you unlimited access to your checking account without worrying about carrying large sums of cash. Debit cards are easy to use online or in person, and just as easy to cancel if the card is misplaced or stolen. If you drop your wallet in the street, you can put a freeze on your debit card until it’s found.
Chances are your employer offers direct deposit. If you’re unfamiliar, direct deposit is when your paycheck goes right into your bank account, as opposed to putting a piece of paper into your hand. This gives you access to your hard-earned money right away, with no extra stops at the bank.
Build Your Credit
Let’s be clear—having a checking account does not improve your credit. However, it might be able to assist. One way you can easily improve your credit is by setting up automatic payments for your bills so you never miss a payment. Simply use your account and routing numbers to tie your bill payments to your checking account, set up automatic withdrawals, and never worry again about being on time.
Monitor Your Financial Health
Almost every checking account comes with an online portal where your finances can be easily monitored and managed. Your digital checking account will provide a dashboard full of all your banking needs. From freezing your account in case of emergency to checking just how much you really spend on take-out each week, you can keep track of all the money that comes in and out of your account each month.