The Advantages of Having a Checking Account
In today’s society having a checking account is pretty standard practice, checking accounts do not pay much interest, but it provides you a way to make sure your money is secure at all times, which you can easily withdraw at any time. If you’re looking to open a free checking account cypress tx has plenty of banks who can help assist you.
Convenience
Having to carry a wallet packed to the brim with cash, is not only inconvenient but often times if a person loses or misplaces their wallet, they’ll have no way to recover the money inside. The benefit of writing a check is if you happen to lose or misplace the check, you can easily have it canceled. It’s also a lot easier to write a check than it would be to have to go to a bank or ATM to withdraw money. Another advantage is, with direct deposit, you can have your paycheck deposited directly into your account automatically, which provides you faster access to your money. You can also have money automatically taken from your account when your electricity or water bill is due by setting up auto-pay.
Protection
One of the biggest advantages of having a checking account is it provides you with a safe place to keep your money. Storing cash at home can pose many risks, including, robberies, natural disasters, fires, and often times can get lost or misplaced. Carrying large incumbents of cash can be extremely problematic, the last thing you want to happen is for you to lose or misplace an envelope with your rent money. A bank account is a federally insured institution, protected by the FDIC (Federal Deposit Insurance Corporation), which covers up to $250,000 in losses. The FDIC was established to protect customers, which gives them reassurance knowing that their money is secure. A canceled check can also provide proof that a bill is paid.
Interest Rates
One of the biggest advantages of having a checking account is it will slowly garner interest, which means you can earn money, simply by having cash in your account. Having a checking account is the easiest way to save money. To simplify how interest rates work, interest is paid to someone who lends money and is charged when you borrow it. Having a checking account will help you better manage your finances. Often time’s banks require you to maintain a minimum balance, which will reduce the likelihood of you accidentally being overdrawn.
Different Kinds of Checking Accounts
There are many different kinds of checking accounts, joint checking, which is usually shared between you and your spouse. There’s also a business checking account, which often times will specialize in larger financial transactions. Online checking accounts are becoming the most commonly used; they charge no monthly fees and provide 24-hour customer service. Free checking accounts are fairly common, they also require no monthly fees, but if you overdraw your account, you’ll likely be charged some sort of penalty.