13 Checking Account Benefits You Shouldn’t Overlook

By Zach Buchenau

Last Updated: May 27, 2022

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If you’re looking for a secure and convenient way to manage your finances, checking accounts offer all kinds of benefits and advantages.

From tracking your spending to simplifying your budget and even earning cash back, here are ten powerful reasons why you should consider opening a checking account:

Convenient Access To Your Money

A checking account gives you easy and convenient access to your money. You can withdraw cash whenever you need it through an ATM, write a check, or just use your debit card to make purchases.

In this day and age, where we do so many things online, having a debit card could almost be considered a necessity.

Whether you need to pay your rent or mortgage, buy groceries, or shop online, a checking account provides you with the flexibility to do so without having to carry around large amounts of cash.

Plus, if you ever find yourself in a bind and need access to emergency funds, a checking account provides you with quick access to your money.

13 Benefits of having a checking account | Be The Budget

Checking Accounts Make Budgeting Easier

A checking account can also help you simplify your budget. Once you have your account set up, you can easily transfer money into savings, set up automatic bill payments, and keep track of your spending.

This way, you can see exactly where your money is going each month and make adjustments to ensure that you’re staying on track.

Beyond that, whenever you use your money to make a purchase, you can immediately view all of your transactions online.

So, at the end of the day, you can log into your bank account and easily update your budget.

In fact, my wife and I only spend money on our debit card for this very reason. Since all of our spending happens from one account, we can quickly update our budget and get a clear view on our financial progress.

Most Checking Accounts Are Free

A lot of people think that they need to have a certain amount of money in their checking account in order to keep it open.

But the truth is, most checking accounts are actually free as long as you meet a few requirements–like maintaining a minimum balance, or using your debit card at least 10 times per month.

Even if you don’t meet the requirements for a free account, the monthly fee is usually only $10 to $15.

So, even if you did have to pay a small monthly fee, a checking account is still an affordable way to manage your finances.

That said, there’s really no reason for you to ever pay a monthly fee for your checking account. With so many great free checking accounts out there, you can easily find one that will keep you from ever having to pay a fee.

Important: If you decide to open a “free” checking account, make sure you understand what kind of requirements you need to meet in order to waive the monthly fees. After all, you wouldn’t want to sign up for a checking account you thought was free, only to end up getting charge a monthly fee.

Your Money Is Secure In A Checking Account

A checking account is a very safe place to keep your money.

Unlike cash, which can be easily lost or stolen, your money in a checking account is FDIC-insured up to $250,000.

This means that if your bank ever went out of business, or someone hacked into your account and stole your money, you would still get your money back.

Plus, most checking accounts come with fraud protection, so you can rest assured knowing that your money is safe and secure.

Easily Send And Receive Money

A checking account also makes it easy to send and receive money.

If you need to pay someone back for dinner, or chip in for a group gift, you can simply send them money through your bank’s mobile app.

Plus, if someone owes you money, they can easily deposit the cash into your account.

You can even connect your checking account to apps like PayPal or Venmo to make this process even easier. Just enter the amount you want to send or request, and the money will be transferred instantly.

You Can Pay Bills Online

Another great benefit of having a checking account is that you can pay your bills online.

Instead of writing out a check and mailing it off each month, you can simply log into your bank’s bill pay system and schedule all of your payments in one place.

This is especially useful for fixed payments like: insurance premiums, debt payments, and even your rent.

By paying your bills online, you can avoid late fees and keep your finances in good standing.

Honestly, I try to automate as many monthly payments as I possibly can. It’s just way too convenient, and it gives me confidence that I won’t let an essential bill slip through the cracks, unpaid.

You Can Take Advantage Of Direct Deposit

If you get paid via direct deposit, a checking account is basically a requirement.

With direct deposit, your employer can simply deposit your paycheck into your account on payday. No more waiting in line at the bank to cash your check.

Plus, many checking accounts these days allow early access to the money you receive through direct deposit. That way, you don’t have to wait multiple days to access your earnings.

With early direct deposit access, you can get a jump start on your monthly budget, bills, and other financial obligations.

You Can Get Overdraft Protection

Overdraft protection is like a financial guardrail provided by most banks that protects you from accidentally spending more than you have in your checking account.

If you have overdraft protection, and you try to make a purchase that would put your account into the negative, the bank will simply deny the transaction.

This can save you from a lot of fees and headaches down the road.

I realize that overdrafting your account isn’t something you would ever have to deal with when paying with cash. However, it’s nice to know it’s there just in case.

Some Checking Accounts Can Earn Interest

While it’s not a ton of money, some checking accounts actually earn interest.

This means that the bank will pay you a small percentage of the money you have in your account each year, just for keeping your money there.

Of course, the interest rate on checking accounts isn’t going to earn you the kind of return you can achieve through other investing vehicles, but hey, some interest is better than no interest.

Online And Mobile Banking

Last but not least, most checking accounts offer online and mobile banking.

This means that you can easily check your account balance, transfer money, and pay bills from the comfort of your own home. In other words, nearly everything you need to accomplish can be done from your computer.

Plus, with mobile banking, you can do all of this on the go. Whether you’re at the grocery store or sitting in line at the DMV, you can always access your account with just a few taps on your smartphone.

You Can Earn Rewards And Cash Back

Some checking accounts even offer rewards and cash back on certain purchases.

For example, some banks will give you cash back when you use your debit card at the grocery store or gas station. Others may offer points that can be redeemed for travel, merchandise, or gift cards.

To be clear, not all checking accounts offer rewards and cash back. However, if you can find a rewards checking account that works for you, these little perks are a nice bonus.

You Can Set Up A Joint Checking Account

If you’re married, you may want to consider opening a joint checking account.

A joint account is simply a checking account that is owned by two people. This is incredibly useful for budgeting, as both you and your spouse will be able to see and understand exactly where your money is going each month.

This, in turn, can help you avoid arguments, secrets, and even help you hold each other accountable to your financial goals.

You Will Have A Record Of Your Spending Habits

Perhaps one of the most important benefits of having a checking account is that it can give you clarity in regard to your spending habits.

When you use cash, it’s very easy to lose track of how much money you’ve spent, and where you spent it. You have to be incredibly diligent about keeping your receipts, writing down every expenditure, and staying organized.

However, when you use a checking account and debit card, your bank will keep track of all of this information for you. At the end of each day, you can simply log into your online banking account and see exactly where your money went.

Even better than that, you can look back over the entire month, assess your overall spending habits, and find areas for improvement.

For instance, let’s say you notice that you spend a lot of money on coffee every month.

With this information, you could either cut back on your coffee habit, or start making coffee at home to save money.

Ultimately, a checking account can be an invaluable tool for helping you get a handle on your spending habits and eliminate wasteful spending.

Benefits Of Having A Checking Account: Final Thoughts

There are plenty of advantages to having a checking account. From the ability to pay bills online to the convenience of mobile banking, these accounts offer a lot of value.

Not to mention, many checking accounts offer rewards and cash back, which can help you save money on everyday purchases.

Do you have a checking account? What do you like most about it? Let us know in the comments.

Zach Buchenau

About The Author:

Zach Buchenau is a self-proclaimed personal finance nerd. When he isn't writing about budgeting, getting out of debt, making extra money, and living a frugal life, you can find him building furniture, fly fishing, or developing websites. He is the co-founder of BeTheBudget, and Chipotle's most loyal customer.

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