Why should you have a checking account?

Security

• It's safer to carry a checkbook or a check card rather than cash. If you lose your wallet, you can call your financial institution and put a hold on your account so your money cannot be used.
• Money deposited at a financial institution is federally insured. Unfortunately, your drawer of cash is not. If someone steals out of your drawer, you won't be able to get the money back. But if someone steals from your financial institution, your money will still be available to you.

Convenience

• It's cheaper and easier to write a check rather than buying a money order. Also, when you write a check, you have proof that you paid the bill.
• For everyday purchases (grocery store, restaurants, gas station, etc.), your check card is a quicker and easier way to pay. Usually you can use it anywhere a credit card would be accepted. Check with your financial institution.
• Whenever you need cash, your check card also serves as an ATM card. You can withdraw cash from your checking account at one of your financial institution’s ATM machines — usually, with no fee.
• Having your paychecks direct deposited into your checking account saves you time and money. Some check cashing companies charge outrageous amounts of money just for cashing a check. If you have your payroll automatically deposited to your checking account, the money is ready to be used the morning of your payday. You can then use your check card or checkbook to access your money.
• Online banking and automated telephone banking make it possible for you to access your checking account at all times. These two services allow you to check your balances, transfer money between accounts, and pay loans at your financial institution.
• Increasingly, Online Bill Payer is a feature that now comes with a checking account. Some financial institutions charge for this service and some offer it at no charge. It's a secure and easy way to pay bills from your computer. Instead of writing checks, you just enter the business you want to pay as well as your account number and the payment is sent for you. You have proof that you sent payment, as well as the advantage of knowing when the payment was received. Online Bill Payer also saves you the bother and expense of buying stamps and envelopes that are necessary when you send checks through the mail.

Future Benefits

• Building a relationship with a financial institution can help you in the long run. Eventually you'll probably want a car loan, a home loan, etc. When you've been part of a financial institution for a while and stayed in good standing, they will be more likely to consider you for a loan and offer you a good interest rate.