You can keep your money safe and sound in a checking account or a share draft account with a credit union. Opening a checking account is a great approach to start building a solid financial foundation for yourself and your future.

Those who prefer to avoid visiting a bank's physical branch might open an online checking account instead. With the help of a computer or mobile device, you can manage your money in an online checking account without ever having to visit a bank branch. You do not need to visit a bank to deposit cash or a cheque. Apps for smartphones make it possible to deposit checks by just photographing them. In addition, several virtual financial institutions have agreements with ATM providers so their clients can utilize those machines to deposit funds.

The advantages of modern checking accounts are too wonderful to pass up, even if you rarely use paper checks and prefer a digital wallet. Check out the top features of a checking account, whether you are shopping around for a new bank or just curious.

Benefits Of Using A Checking Account

1. Ease Of Access

Having quick and simple access to your money is a major perk of having a checking account. You can swiftly and easily manage your funds with a checking account at Vocal Credit Union in person, at an ATM, by writing checks, or through our online banking interface. You can deposit or withdraw money at any of these convenient locations.

Do you need assistance locating a bank machine (ATM)? Look into our Bank Machine Finder.

2. Electronic Payment History

Cash transactions make it difficult to monitor spending habits. In a payment dispute, you will need documentation to rely on. Your online bank statement will include your account activity, purchases, and withdrawals.

3. Direct Deposit

Many companies use direct deposit to deposit employee paychecks directly into their employees' bank accounts. You will not have to worry about receiving and remembering to cash a paper check. You can have money deposited directly into your bank account from your pension or benefits provider.

4. Grow Interest

A checking account that pays interest on the amount is called an interest checking account. This occurs every month and allows you to consistently earn interest on your account balance.

5. Build Credit

Keeping up a checking account can be a major help if you are trying to build credit or increase your current score. Lenders and credit bureaus will see that you are competent with money if you maintain a positive balance in your checking account, do not bounce checks, and consistently pay your payments on time.

6. Youth And Money Management

Opening a checking account is an excellent first step in educating your children and teenagers about the need for fiscal responsibility. A checking account provides young people various opportunities to learn about financial responsibility, from making and sticking to a budget to saving for higher education.

7. You Do Not Need Cash

The bills and coins you carry around in your wallet might be burdensome and annoying to keep track of. You do not need cash with a checking account and a debit card.

8. Security

A checking account is a better way to keep your money secure than carrying large amounts of cash, which can be lost or stolen. If your debit card is lost or stolen, you can quickly and easily close the account, halt further payments, and open a new one. In that manner, the value is not immediately lost like it would be if you were to lose cash.

9. High-Tech Features

One of the major selling points of online checking accounts is the availability of high-tech services, such as budgeting aid and interoperability with personal finance applications like Quicken and Microsoft Money. Many allow you to schedule recurring weekly or monthly transfers to and from other accounts at predetermined amounts. You can use this service to maintain a monthly budget and increase your savings. Personal finance software that can automatically download account information is becoming increasingly popular since it simplifies budgeting and tax preparation.

10. Higher Yields and Lower Fees

Since online banks have lower operating costs than traditional banks, they are often able to offer their customers greater interest rates and reduced fees. The Federal Deposit Insurance Corporation (FDIC) reports that the average annual percentage yield (APY) for checking accounts in the United States is 0.03% as of December 2021.

Nevertheless, checking accounts with annual percentage yields of 1% and above are available at some Internet banks.

The cheap fees associated with online checking are another major selling point. These low fees are achieved by passing on savings from eliminating intermediaries. Online banks rarely have their ATMs; they often cover the fees their customer's experience when using an ATM separate from their network.