Five reasons to open a checking account

According to the FDIC, more than that 17 million Americans do not have any kind of bank account, and with many industries and small businesses being affected by the pandemic, money can be tight. For those receiving a government stimulus check, opening a checking account will not only allow them to save money by eliminating the high fees associated with same-day cashing services, but also will help start a path to financial independence.

Checking accounts are useful, all-purpose places to keep your money safe and secure in the short- to medium-term. They are widely considered to be one of the easiest ways to manage money and simplify financial tasks.

Keeping this in mind, here are five reasons why everyone should have a checking account.

Make Automatic Payments and Budget Your Financials. You never know when you’ll need written proof that payment has been sent. With a checking account, there are several records of every transaction you make. This is useful for budgeting or providing proof of payment when making large purchases. All transactions are automatically recorded on your monthly statement, making for an excellent way to see exactly where your money goes each month and adjust your spending habits accordingly. 

It’s also much easier to pay your friends back for lunch, setup automatic payments for your bills or rent, and cut down on all the paper clutter that gathers on your kitchen table. Your checking account comes with a debit card, allowing you to shop online or use convenient contactless payment systems, such as Samsung, Google and Apple Pay.

Get Your Paycheck Quicker. According to a study by CareerBuilder, almost 78% of Americans are currently living paycheck to paycheck. It is important that the funds from your paycheck be available to you as quickly as possible. With a checking account, most employers allow you to set up direct deposit for paydays meaning you can skip the hassle of collecting your check, driving somewhere to get it cashed (with a fee) and finally getting your owed money. When you arrange direct deposit through your checking account, these funds are available immediately.

Keep More of Your Money. While same-day check cashing and other services do allow the unbanked to cash checks, there is often a percentage fee involved. If you are making deposits with any kind of frequency, these fees can quickly add up. By opening a standard checking account, you can avoid these transaction fees and retain more income. 

No Transaction Limits. If you have a savings account, you’re typically only allowed up to six transactions in a single month. Thinking of how many small purchases the average person makes per day, this is pretty limiting. Checking accounts have no federal limits on the number of purchases or transfers you can make per month. This means you can make purchases, wire funds or move money with your account as many times as you want, worry-free.

Protect your money. At the end of the day, a checking account is one of the safest and most secure ways to pay for the things you need. Keeping cash in a safe place at home might provide some safety, but your hard-earned money will still be vulnerable to robberies, fires or natural disasters. Having a debit card helps you avoid carrying around large sums of cash, and most banks offer protection in case your card is lost or stolen. Your bank also provides aid from identity theft and your funds are fully insured by the FDIC up to $250,000 per account.

To learn more information about opening a checking account, visit firstbanks.com/thrivechecking or call (800) 760-2265.

Jon Moen is First Bank senior vice president and director of Product.