A checking accounts is a valuable banking tool that you can have aside from a savings account. They are both insured up to a certain amount. Why is a checking account necessary if you have a savings account already in the first place?
A checking account comes with the following items:
1) Checkbook-this is of utmost importance to the account. With this, you are legally obligated to pay the recipient of the check by authorizing the transfer of money from your account to the recipient's account.
2) Debit card- Debit cards are on the rise now compared to ATMs. A debit card transaction works like an ATM and credit card in one. You PIN in on the machine so the transaction can be completed and you sign the transaction slip. The amount will be debited from your account.
Checking Account Versatility
Checking accounts are very versatile because they have multiple purposes that make them valuable to the account holder. Primary consideration is you don't have to carry cash. You can use the checks for the following:
1) to pay bills and other household utilities- the checks can be the receipt or record of the transaction when you use it to pay bills and utilities
2) to pay someone for services rendered or goods purchased- the recipient has to trust that you are going to make good the check that you handed out
3) to pay items bought via mail- it is more convenient and secure to pay with a check via mail
4) to pay off loans- you can settle your credit card loans by paying with a check
5) to buy items in installment like a house- you have to issue a series of postdated checks to the lender
In order for you to handle your checks carefully, observe the following tips:
1) Always balance your checkbook after each transaction- avoid bouncing checks and overdrafts by keeping your records in order
2) Keep track of debit card purchases-keep a record also of your debit card transactions since you can also withdraw money with a debit card
3) Do not sign your checks beforehand- you might misplace your checkbook and someone can withdraw your money
4) Keep your checkbook in a safe place-this is to make sure that you do not misplace your checkbook
Checking Account Downside
1) Your checkbook might get lost and your signature can be forged
2) Higher balances are required in a checking account as compared to a savings account The balances here earn minimal interest.
3) Checking accounts have transaction fees and penalties that also come with misuse of the facility
4) you might be limited to a number of checks that you can issue out
A checking account may have an interest smaller than a savings account but it is still something that you need in your day to day transactions. Having a checkbook is convenient and handy. You just need to balance the pros and cons of maintaining a checking account and make the most of owning one.
A checking account comes with the following items:
1) Checkbook-this is of utmost importance to the account. With this, you are legally obligated to pay the recipient of the check by authorizing the transfer of money from your account to the recipient's account.
2) Debit card- Debit cards are on the rise now compared to ATMs. A debit card transaction works like an ATM and credit card in one. You PIN in on the machine so the transaction can be completed and you sign the transaction slip. The amount will be debited from your account.
Checking Account Versatility
Checking accounts are very versatile because they have multiple purposes that make them valuable to the account holder. Primary consideration is you don't have to carry cash. You can use the checks for the following:
1) to pay bills and other household utilities- the checks can be the receipt or record of the transaction when you use it to pay bills and utilities
2) to pay someone for services rendered or goods purchased- the recipient has to trust that you are going to make good the check that you handed out
3) to pay items bought via mail- it is more convenient and secure to pay with a check via mail
4) to pay off loans- you can settle your credit card loans by paying with a check
5) to buy items in installment like a house- you have to issue a series of postdated checks to the lender
In order for you to handle your checks carefully, observe the following tips:
1) Always balance your checkbook after each transaction- avoid bouncing checks and overdrafts by keeping your records in order
2) Keep track of debit card purchases-keep a record also of your debit card transactions since you can also withdraw money with a debit card
3) Do not sign your checks beforehand- you might misplace your checkbook and someone can withdraw your money
4) Keep your checkbook in a safe place-this is to make sure that you do not misplace your checkbook
Checking Account Downside
1) Your checkbook might get lost and your signature can be forged
2) Higher balances are required in a checking account as compared to a savings account The balances here earn minimal interest.
3) Checking accounts have transaction fees and penalties that also come with misuse of the facility
4) you might be limited to a number of checks that you can issue out
A checking account may have an interest smaller than a savings account but it is still something that you need in your day to day transactions. Having a checkbook is convenient and handy. You just need to balance the pros and cons of maintaining a checking account and make the most of owning one.
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Find out why getting a checkbook is valuable to your day to day transactions and how to make the most of having one at checking account
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