Reasons to Have a Checking Account

by Marissa Willman

Overview

Rather than hide stacks of cash under your mattress, you may decide that a checking account is a more appropriate way to manage your money. A checking account allows account holders to store their money with the institution while maintaining open access to funds. Checking accounts have several important benefits for consumers.
Records

A checking account provides an electronic trail of your financial activity. Your banking statement can be used as evidence if you need to dispute a charge or prove that a payment was made.

Access

Funds in a checking account can be accessed through a debit card or by writing a check. Both forms of access can often be used as forms of payment, eliminating a need to carry large amounts of cash.
Insurance

In accordance with federal law, U.S. checking account deposits are insured for up to $250,000 in case a bank fails. This ensures that the consumer's money is relatively safe while it remains in the account.
Direct Deposit

A checking account allows the account holder to receive payments, such as a paycheck, through a direct deposit. Direct deposit uses the account holder's checking account and routing number to directly transfer funds into the account.
Safety

If cash is stolen or misplaced, it can be nearly impossible to recover. If a debit card or checkbook is stolen, the bank can be instructed to put a hold on the checking account. Unauthorized charges can also be disputed.