If managing your money efficiently is a goal of yours, we think you’ll want to consider the advantages of a checking account to help you get started.

What Is a Checking Account?

Unlike a savings account, in which money is often reserved for emergencies or financial goals, the money in a checking account is designed to accommodate everyday transactions, like spending on groceries and household bills.

A checking account allows you to store your money while offering flexible access to it. This flexible access includes:

  • Making deposits – You can make almost any type of deposit to a checking account.
  • Paying for purchases – You can use your checking account to make payments by writing a check, using a debit card, or providing account information.
  • Withdrawing funds – Similarly, you can take out money from your account by writing a check (to cash, or to a recipient), withdrawing cash from your bank or through an ATM, or using a debit card at an establishment.

Types of Checking Accounts

Checking accounts can vary by institution and product type, offering different benefits or fee structures based on certain eligibility criteria. For instance,

  • Traditional checking account – These refer to checking accounts that offer basic options for account holders, typically without any “extras.”
  • Interest-bearing checking accounts – These refer to checking accounts that earn interest on money kept in the account.
  • Rewards checking accounts – These refer to checking accounts that allow you to earn “rewards” when you spend money from the account, similar to credit card rewards.
  • Student or senior checking account – These types of accounts generally have eligibility requirements based on age and/or student enrollment status. They typically include benefits such as discounts or waived fees that cater to certain ages or lifestyles.

Benefits of Checking Accounts

Regardless of which type of checking account you choose, there are many common advantages to keeping one.

  • Checking accounts help simplify the everyday management of your finances by providing a safer means to keep and access your money.
  • Your financial institution may offer resources to help you track your balance and budget your money expenses with online banking or mobile apps.
  • You can set up direct deposit for your paycheck or recurring income and take advantage of mobile deposit, saving you time and energy that might have been used handling in-person transactions.
  • Many banks let you transfer funds between accounts and send money from your account to others, often without fees.
  • Having a checking account at a federally insured institution means that your funds are FDIC-insured up to $250,000 per depositor, per category, providing a level of security higher than keeping your funds in cash alone. (Note: Not all institutions that offer checking accounts are insured by the FDIC or National Credit Union Administration (NCUA). Anytime you open a checking account, including with an online banking entity, it is important to confirm if and how your funds are insured.)

Disadvantages of a Checking Account

However, when you’re looking for the right type of checking account, keep in mind these considerations, which may cost you otherwise.

There are usually fees on checking accounts, which may include monthly fees, overdraft fees, or minimum balance fees. These may be avoided by meeting account requirements, such as maintaining a minimum balance.

Read the full article on Checking Accounts: here.

At SouthEast Bank, we offer several different types of checking accounts to fit your needs and financial goals, many of which can be opened online with a $50 minimum deposit. Our team is always ready to provide assistance or help answer questions, so feel welcome to stop by a branch or contact us as you explore your options.

Your financial journey starts with SouthEast Bank.

Olivia Johnson is marketing strategist for Southeast Bank.

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