What Is A Checking Account?
A checking account can be opened through a bank or credit union, and allows you to easily deposit or withdraw money. You can then use these deposited funds to pay for bills or make purchases with a bank issued debit card. Moreover, you can also choose to have your employer directly deposit your earnings to the account itself instead of receiving a paper check. Saving you a trip to the bank every time you’re paid.
With a checking account, you can even elect to have your monthly bills withdrawn each month by setting up automatic bill pay. Not only does this save on paper but protects you against late fees. As long as you’re financially stable, and are confident you will have enough money deposited into your checking account each month, this option is a no-brainer! Most importantly, you can rest assured that your money will always be safe in your checking account since banks carry FDIC insurance for its depositors up to $250,000! Keep in mind, however, this applies only to money held within your checking, savings, or money market accounts.
Your Interest Checking Account Will PAY You Money!
Many checking accounts provide some form of interest to its customers by allowing a bank to utilize its available cash when needed, and for doing so, you will receive a small kick back every month for doing nothing more than having cash deposited into the account itself. So, the more money you have in your
checking account, the more you earn! Simple as that. Many checking accounts provide some form of interest to its customers by allowing a bank to utilize its available cash when needed, and for doing so, you will receive a small kick back every month for doing nothing more than having cash deposited into the account itself. So, the more money you have in your checking account, the more you earn! Simple as that.
Banks such as Ally, offer as much as 0.10% APR for any account with less than $15,000 deposited. Whereas, Bank of America yields a low 0.01% APR for its checking accounts. To put this in perspective, $5,000 deposited to an Ally checking account would net $5.00 to your account if kept untouched for a
year compared to a Bank of America checking account that would only net a mere $0.50. Of course, these amounts don’t come close to what a bank issued CD, or some high interest savings account could offer you, but everything adds up over time, and as always, it is important that you’re always allowing your money to make money for you!
