6 Benefits of a Checking Account
Checking accounts, also known as share draft accounts at credit unions, are handy, all-purpose accounts to keep your money safe and secure. Not only are they a convenient way to hold and access your funds, but opening a checking account is an excellent step in creating a healthy financial future.
Even if you don’t write checks and use a digital wallet over cash, today’s checking accounts offer benefits that are too good to pass up. Whether you’re looking to switch your financial institution or researching new tools, check out the best checking account benefits below.
Money Management
Money management tools can help account holders track expenses, invest, and maintain a budget. Each financial institution will offer a different assortment of money management tools. Check with your local financial institution for details.
- Set up alerts for low balance or other warnings.
- Automatic savings accounts make saving seamless.
- Budgeting tools that will show your money in a meaningful way.
- Connect all of your financial accounts, even outside of your local bank or credit union.
Build Credit Health
For many people, a checking account is the first step in building a solid credit score that lenders love.
- A well-maintained checking account can demonstrate to lenders and credit reporting agencies that you’re responsible with your money.
- Many financial institutions offer tools that allow members to track their credit scores. These inquiries are known as a ‘soft pull,’ and don’t affect credit scores.
- Some credit unions offer credit checkup tools. These tools can provide tips on how to improve your score. Find a credit union near you to learn more about financial services.
Keep Your Money Safe
Credit unions are insured by the National Credit Union Administration (NCUA). The Federal Deposit Insurance Corporation (FDIC) insures bank deposits. This means your money is safer in your checking account than in your piggy bank.
For added security and peace of mind, many credit unions offer the ability for members to lock their debit cards and receive push notifications whenever a fraudulent purchase is made.
Online Checking Account Tools
Today’s checking accounts offer members more tools than ever before. Take advantage of these and see funds grow and financial goals achieved.
- Fast Transfers
- Mobile deposits
- Fraud alerts
- Direct deposits
Fast and Secure Bill Paying
Set up bill pay and make it easier to pay off debts, car payments, and even utilities.
- Keep bills organized and in one place.
- Choose the date you want to send the payment.
- Set alerts for due dates and payments received.
- Reduce paper waste.
Easy Access to Cash
Credit union members and bank customers will find easy access to cash and services.
- In addition to writing checks, you can manage your money in your checking account via branches, ATMs, websites, and mobile sites.
- Multiple points of access allow you to conveniently and quickly deposit or withdraw money when and where you need it.
- Many credit unions are part of the CO-OP ATM network that offers over 30,000 surcharge-free ATMs and over 5,000 shared branches in the United States.
Further Resources on the Benefits of a Checking Account
Here are some further resources on the benefits of a checking account.
- The Balance: This article explores the advantages of having a checking account, including the ability to manage finances more easily, access to online banking and mobile apps, and the potential to earn interest on balances.
- Experian: This resource explains the perks of having a checking account, including convenience, access to debit cards and ATM withdrawals, and protection against fraud.
- Credit Ninja: This article covers the benefits of having a checking account, such as access to online banking and bill pay, as well as tips for selecting the best account for your needs.
Digital Wallets
Check with your financial institution if this feature is enabled. A digital wallet is a convenient way to purchase all kinds of items and services using your phone instead of cash or credit cards. Examples are Apple Pay, Google Pay, Venmo, PayPal, and Zelle. You can set up a digital wallet and link it to your checking account. Once enabled, you can conveniently transfer funds from wallet to bank or bank to wallet.
