Almost everyone in the developing world today has a checking account with a bank or credit union. However, many people are unaware of how exactly to make the most of their checking account as anything relating to banks or financial institutions can be quite daunting and confusing. This is unfortunate because the benefits of optimizing checking accounts are often quite good.
Interestingly, there are many different things that people can do to manage their checking accounts. These are explored in detail below and should be used to start saving money and to improve banking efficiency.
Paying bills
Most banks allow people to use their checking account to pay their bills. You can write a check or make an online transfer to your electricity company, phone provider or any other creditor you may have. This is much more convenient than paying with cash. Moreover, cash bill payments are not commonly made in most technologically advanced countries.
Collect interest and monitor your balance
If you keep a lot of money in your checking account, you can collect interest on it. Compare the interest rates among different banks and see which one provides the best yield. Don’t forget to compare fees too. For instance, some banks charge overdraft fees when customers withdraw too much from their account.
Debit cards
As Bank of America has conveniently explained, “Debit cards allow you to access your checking account conveniently and securely, without having to carry a lot of cash or checks. You can use a debit card at millions of locations worldwide including places that don’t take checks like gas stations, restaurants and online merchants.”
The convenience of a debit card should not be underestimated and is clearly a great way to make the most of your checking account and ensure you are keeping track of your finances. If you use a debit card, then you will get a transaction history of all of the charges you make. This record helps when financial planning and budgeting.
Asset protection
If you store money in a checking account at the bank as opposed to in a mattress or in a shoe box, then you will ensure your money is being properly secured. Many countries have organizations that insure bank deposits in the event of fraud, theft or similar issues. Examples of such insurers include the FDIC in the United States and the CDIC in Canada. Particularly in Western countries, such insurance programs are common for bank deposits.
Direct deposit
If you use direct deposit, then your salary or wages will go directly into your bank account. This forces you to save and also takes the fuss out of going to the bank to deposit your paycheck.
There are so many ways to make the most of your checking account. However, there are several facets and elements to having a checking account that you must investigate in order to fully appreciate the benefits. Apply the suggestions and advice in this article to learn in full how to make the most of your checking account, then use the advice to save yourself money and improve your life.