Benefits of Having a Checking Account

Many people today are opting to use prepaid cards instead of checking accounts. Others are opting to carry cash. However, a checking account is still the best option for storing your money. There are a number of benefits that you can reap from having a checking account.

Convenience

Convenience is one of the many benefits of a checking account. If you have a checking account, then you will not have to worry about carrying cash on you. It is easy for you to get the cash that you need if you a debit card. Not only can you withdraw funds from the ATM, but you can also use your debit card to make purchases.

You do not need to have paper checks in order to use a checking account. You can also use online banking to pay bills using your checking account. Furthermore, a checking account makes it easier to be approved when you search for a cash loan or respond to credit card offers, as a checking account indicates a certain level of financial stability.

Safety and Protection

Many people store cash in their home because they feel that it is safe. However, storing cash in your home has many risks. If cash is lost due to a natural disaster or fire, then your cash may be lost forever. It is much safer for you to keep your money in a checking account.

The money in a checking account is secured by the Federal Deposit Insurance Corporation, or FDIC. The FDIC insures funds up to $250,000. If something happens, then you can rest assured that your funds will be protected.

Easier to be Approved for a Loan

As mentioned earlier, you may have an easier time getting approved for a loan if you have a checking account that is in good standing. In fact, many lenders require that you have a checking account in order to apply for a loan. Not only will it be easier for you to get approved for a loan if you have a checking account, but you will be able to quickly get your funds. Many lenders will deposit the funds directly into your account.

Easier to get Approved for an Apartment

Landlords want to rent to people who have a steady income coming in. That is why you may be asked to provide a copy of your checking account statements. If you have a checking account, then it may be easier for you to get an apartment.

Easier to Manage Finances

It is easy for you to keep track of your finances if you have a checking account. You will get a statement every month, so you can see exactly how much money you have coming in and going out. You can also use online banking, which allows you to access your banking information anywhere. It will be easier for you to make the adjustments that you need in your budget.

While many people do not consider a checking account to be a necessity, it will still make your life a lot easier. Your checking account can help you manage your finances as well as get approved for a loan and apartment. Your money will also be insured if you have it in a checking account. Additionally, a checking account allows you to quickly access the funds that you need.