To manage your finances effectively it’s important to be familiar with all the banking system features.
Despite the low interest rate (just 0.06 percent) checking accounts remain a constant option for the customers due to the easy access to cash transferred to it. Basically, it’s a more secure replacement of old-school miniboxes with some regulations.
With a possibility of online banking and easy check processing, it’s a convenient way to keep your cash in hand in a form of a debit card, make withdrawals and transactions, pay bills or take out online loans you can pay back monthly without excessive efforts if you enable the appropriate settings.
Checking Account Types
Like any other companies, financial establishments have become more customer-oriented. That’s why each their service comes in a few different versions to fulfill the needs of every segment of the society. Checking accounts have the following types:
- No monthly charges and a minimum obligatory amount are included in the agreement, but some additional services can be available only after stipulated payments.
- Comes with basic account benefits and regular fees that on some occasions can be avoided if the certain conditions are met.
- An account with a higher minimum required amount, but it comes with additional advantages like some interest rates or mortgage discounts besides fee cancellations.
- Second-chance. If you became an untrusted client and your account was closed sometimes you might be able to start over with a bank. Be prepared for higher charges and stricter demands to its maintenance, though.
- Business, joint (for married couples), student, etc. are kinds that are planned for particular groups of people. They allow managing finances in their conditions without regular difficulties.
When you pick an account type scrupulously study deal details to ensure that you will be able to fulfill all the clauses and that it won’t negatively affect your funds. Don’t give up to colorful ads and chatty managers – consult with experienced friends or professionals and make a choice deliberately.
Checking Account Benefits
People usually give not a lot of credit to the banks although there are only two basic requirements to them: convenience and security. Conditions in different institutions may vary, but checking accounts check many items on the average client list of requirements.
- Cash-free. Use checks or a debit card to perform various transactions and don’t lose another penny without realizing it. Monitor your expenses with monthly statements and assure that you adhere to your defined personal budget.
- Online banking. Manage your finances with your laptop or even a smartphone with user-friendly websites or applications. Multi-stage authentication systems will ensure your banking information safety if you adhere to common policies.
- Checking account funds unlike home savings are insured up to amounts established by the FDIC. Additionally, checks are valid proofs of payments on occasions of problems with transaction completion.
- Debit cards can be blocked and replaced on the occasion of a loss. Checks can be canceled. Rare bank mistakes can be tracked and corrected even remotely.
- An overdraft option allows you temporally to avoid insufficient card amount situations. If it’s enabled your account gap will be filled with the stipulated sum from another account or credited by a bank.
Generally, it’s a way to take control over your earnings. With a reliable bank, it can get you on a new level of the money management that in its turn will improve your financial situation.
How to Open a Checking Account?
Nowadays such procedures don’t require a lot of time and documents. If you are 18 or older all you need is to go to the nearest branch of the bank you prefer with Social Security Number and ID. You’ll be offered to fill out an application that will go through validation to check your liability as a customer (credit scores, employment stability, etc.). Frequently you can do that online.
If everything goes well, you’ll be offered to sign an agreement that you should fully read before signing to avoid unexpected charges and other inconveniences. You will receive a debit card sometimes even with a custom print, a batch of checks and a bank routing number. Before leaving find out also how to sign up to your online profile and use it.
Now you’re ready to use your account. You can put in checks by yourself or contact your employer to organize that your salary will be deposited there automatically. Check processing and delivery can take from a few minutes till a few days depending on the input amount.
Checking accounts are the way to keep your earrings in one place without access limitations. With a deliberate approach, it can be a convenient way to take control of your finances and simplify your daily routine.
