Do You Need a Checking Account

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Published On:
September 22, 2021

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Many Americans who choose not to open a bank account do so due to a perceived lack of funds or, simply, personal preference. But the fact is, there are many reasons why every consumer should consider opening a checking account to manage their finances.

Consider the following benefits of having a checking account.

Use of a Debit Card

Debit cards that are linked to a checking account provide nearly all of the same benefits as a credit card without the need to have a perfect credit score. Debit cards can be used anywhere in the world to make purchases, reserve a rental car or hotel, withdraw cash, pay bills, and even pay your rent.

When you use a debit card, the funds are deducted directly from your checking account. This allows you to keep better track of your purchases and stop you from overspending. Plus, debit cards also function as ATM cards so you will have access to cash if you need it.

Some consumers prefer to use prepaid debit cards, but these products are limited. Prepaid debit cards are often riddled with fees and cannot be used in some situations, such as for a hotel reservation. They also typically have fewer fraud protections and less security.

Ability to Get Paid by Direct Deposit

If you haven’t yet discovered the joys of getting paid via direct deposit, you’re missing out! Gone are the days of needing to wait until midnight on Friday or drive back to your workplace on your day off to pick up a paper check. 

With direct deposit, all the work is done for you, and your funds will arrive in your checking account at the earliest possible time. In some cases, setting up direct deposit can even result in you receiving your paycheck 1 or 2 business days early!

Direct deposit also eliminates the risk of a lost or stolen check and allows you to have greater control over your finances. You will have easier and faster access to your well-earned money. Truly one of the benefits of having a checking account!

Possibility of Earning Interest

Although a checking account typically won’t earn you as much interest as other types of accounts, such as savings accounts, some financial institutions do allow you to earn interest on your checking account. Even a small amount of interest is more than you’ll earn by stuffing cash under your mattress or using prepaid debit cards. 

If you’re interested in finding a checking account that accrues interest, you will likely have the best luck checking with smaller local banks and credit unions in your neighborhood. With a little bit of due diligence, it is possible to earn 1 to 3% annual percentage yield (APY) on your checking account. 

With Arbor Financial Credit Union’s Momentum High Yield Checking Account, you can earn up to 3% APY.

NCUA Insurance

Congress established the National Credit Union Administration (NCUA) in 1970 as “an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions. All checking accounts at NCUA insured credit unions are covered for up to $250,000 per person per account. 

This government protection ensures that your money is safe no matter what happens with your credit union. On the other hand, money that you have in cash or other products such as prepaid cards is more vulnerable to being lost or stolen.


Whether you need to track receipts for a business or ensure that everyone is following the family budget, having a transaction history easily available both online and through paper statements is another major advantage of having a checking account. These transactions are much harder to keep track of when you use cash or prepaid debit cards. 

And, especially today, everyone has to be aware of credit fraud. Checking accounts provide the paper trail you need if you ever have a payment dispute or believe you are the victim of fraud.

Facilitates Easier Payments

Whether you use Zelle to send money directly to someone else’s account, PayPal to pay an online subscription, or the Cash App to split a restaurant bill by sending money directly to a friend’s mobile number, having a checking account offers easy access to all types of payments. 

With a checking account, every type of bill payment can be made quickly and securely online or over the phone with your debit card or account routing information. It takes the guesswork out of paying bills!

Online Banking

The ability to manage your finances online offers all kinds of advantages. Everything from paying bills to making deposits is made easier with access to your financial institution’s website or mobile app. 

Having the ability to deposit a check, check your balance, pay your rent, send money to a family member, and more - all from the comfort of your couch - is an unbeatable perk that you won’t get from dealing in only cash.

Access to Other Convenient Services

Once you’ve opened a checking account with a particular financial institution, it is typically easier to take advantage of their other service offerings. 

In addition to the ability to open and link a savings account for easy stockpiling, you will gain convenient access to investment accounts, mortgages, auto loans, and other financial products. Many financial institutions offer other benefits to their customers, such as free notary services, reduced-fee wire transfers, and free check cashing.

Want the Benefits of Having a Checking Account? Open One Today!

You can’t access the benefits of having a checking account without actually having a checking account!

Ready to open a checking account today? Contact Arbor Financial Credit Union to get started.


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