9 Reasons to Open a Checking Account

What is a checking account? A checking account is a bank account designed for everyday spending, bill paying, and managing your cash flow. It’s the epicenter of your daily finances and provides a practical balance of safety and convenience.

First:  Decide that saving money in your wallet or under your bed is no longer the wisest option.

Second: Educate yourself on the benefits of opening your own checking account.

In this post, I’ll share nine reasons why opening a checking account should be one of your first priorities as you learn to manage your finances.

Checking Accounts Are Safe

1. They offer a safe place to park the money you need easy access to. They are far safer than hiding money somewhere at home. You reduce the chances of misplacing your cash, and you can swipe your debit card if carrying a lot of cash makes you nervous.
2. They offer bigger picture safety.  The Federal Deposit Insurance Corporation (FDIC) insures your account for up to $250,000 in the event the bank becomes insolvent.  

Checking Accounts Are Convenient

3. There are lots of banks to choose from. And you’ll get a debit card that allows you to spend what you have without having to hit up an ATM when you are low on cash or pressed for time.
4. Go paperless! Banks love to save money on printing monthly statements and mailing them out to their customers. You will have less paper to manage; you can access your statements and check your balance online at any time.
5. Get your paychecks by direct deposit. Most employers offer to transfer your pay directly from their bank account to yours.  They save money by not printing checks.  You have one less errand to run because you won’t have to deposit the actual check.
6. Many banks are compatible with money transfer apps like Venmo or Zelle. When you go out with friends or chip in to buy a gift, you can settle up right away. You don’t have to worry about owing anyone money, or awkwardly reminding someone that they owe you. Agree on what is owed and settle up before the conversation ends.
7. Some banks can sync up to budgeting apps, like YNAB or Every Dollar.  More and more banks have begun to offer this perk.  If you prefer to use an app to manage your money, syncing up to your checking account offers additional convenience.
8. Most banks will offer free online bill payment. Avoid late fees, writing checks and buying postage. Pay as many bills as possible online to avoid unforeseen challenges, like an illness or a flat tire that keeps you from getting your bills to the mailbox.
9. You can schedule your payments for when the funds are on hand. Work out a consistent bill payment schedule for your recurring monthly bills. Establishing a routine will ease your mind and save you time.

Opening your first checking account is a rite of passage for many teens and young adults. It helps set up a solid framework for managing your money and keeping it safe. 

Coming soon: How to choose the best checking account for your needs and stage of life.

Additional Resource: You can read the Deposit Insurance FAQs here to learn more about how the FDIC protects the money in your checking account.