You work hard to provide for your family or meet your needs, so it only makes sense you invest in proper money management. A significant part of money management is deciding where to keep it.
Sure, you can do it the old school way by having cash in inconspicuous places in your house, or you can get a checking account, which is a much safer choice.
A checking account is a type of deposit account that lets you deposit money and withdraw again to pay bills or make purchases. It’s different from savings accounts because it’s meant for everyday use. Therefore, the money in your checking account is the money you plan to use for the short term to cover daily expenses.
How It Works
When you have a checking account, you may need to write paper checks. A check is a financial tool to transfer money from your bank account to another company or person. Let’s say, you borrowed money from someone—with a checking account, you can write out a check to pay them back with a specific date. The check will serve as a guarantee to the person you borrowed money from and all the person has to do is to cash it on the date on the check.
Aside from spending money with a checking account, you can also move money in and out of a checking account. It also has features, such as direct deposit and mobile deposit.
A direct deposit will let you have money added to your account automatically by simply providing your bank account information. On the other hand, a mobile check deposit will let you take a photo of the check and deposit it to your checking account. In terms of convenience, mobile checks are best because you no longer need to go to the bank or the ATM personally to deposit checks. However, you need to go to an ATM or a branch to deposit cash into your checking account.
Types of Checking Accounts
There are several types of checking accounts you can choose from today. Here are some of them:
- Standard/Traditional: This is a basic checking account meant for bills payment, check writing, and purchases through a debit card. Usually, this comes with minimum balance requirements and a minimum deposit to be able to open this type of account. One of its key features is that it comes with unlimited check-writing abilities, debit card access, and online and mobile banking access to manage your money.
- Interest: It is similar to standard checking accounts. However, with an interest checking account, you can earn interest on your balance. It doesn’t have a higher minimum to open this type of account, but the interest rates you earn will vary.
- Rewards: This allows you to earn rewards when you spend. You can earn points or a specific percentage of cash back for making purchases, paying bills, or scheduling direct deposits into your account every month. Basically, it works like a rewards credit card.
With this information, you can assess if a checking account is a good choice for you. If you think it will help you better manage your money, then it’s time you open one.
Need to open a checking account in Buffalo, NY? Good Neighbors Credit Union helps individuals who look to build a financial foundation. We deliver a range of products, services, tools, and resources. Contact us today to learn more about opening a checking account.