“Five Surprising Perks of Having a Checking Account”

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Make Early Direct Deposits

Most checking accounts offer the convenience of early direct deposits, allowing you quicker access to your earnings. Instead of waiting to cash a paycheck, benefit check, or tax refund, direct deposit can provide faster access to your funds. This eliminates the need for unnecessary trips to the bank.

Earn Rewards

While rewards are commonly associated with credit cards, some checking accounts also offer rewards such as cash back and higher interest rates. These accounts may include perks like welcome bonuses, points, low or no monthly service fees, ATM fee refunds, or discounts on debit card purchases. Unlike credit cards, reward checking accounts typically do not charge an annual fee, though maintaining a minimum balance may be required to avoid fees.

Earn Interest

Did you know that some checking accounts offer interest rates comparable to savings accounts? High-yield checking accounts from select banks and credit unions can provide above-average annual percentage yields (APYs). To earn the highest APY, you may need to meet specific requirements, such as making a certain number of debit card transactions each month or signing up for direct deposit and online banking.

Open an Account Easily

Opening a checking account is straightforward and can often be done in person or online. You’ll typically need two forms of identification, proof of address, and an opening deposit. Depending on the financial institution, additional information may be required, such as a signature for verification purposes. You’ll also learn about any fees and features associated with the account, like overdraft protection or transaction limits.

Keep Your Money Safe

Ensure your checking account is with a bank insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) if it’s a credit union. This insurance protects your money—up to $250,000 per depositor, per account type—in the unlikely event of a bank or credit union failure. Without this insurance, your money could be at risk.

The Bottom Line

Opening a checking account can also provide access to other financial products, such as credit cards, savings accounts, auto loans, and mortgages. While some banks may charge fees for maintaining an account, the benefits of checking accounts generally outweigh the limitations. Additionally, checking account information is typically not reported to the major credit bureaus, so your credit score remains unaffected.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your financial needs!

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