Benefits of a Checking Account

Bills come and go and the best and most efficient way to handle paying them all is having a checking account. There are many benefits and advantages to having a checking account. Some basic reasons for having a checking account:

  • Makes bill paying easy and convenient and can help ensure timely payment of debts
  • Maintaining a checking account in a responsible way is one of the first steps required in building a high credit score
  • Safety first! By having a checking account your money is protected in several ways such as having FDIC insurance coverage up $250,000 on the balance (switching back to $100,000 January 2010) and by not having to carry around large amounts of cash which you can lose to street thugs
  • Automatic proof of payment as a canceled check is a legal document showing that funds have been transferred thus making checks a great piece of evidence in the court system
  • Having a checking account can actually help you save money as if you opt for online checking you can pay debtors electronically thus saving the cost of postage

Having a checking account will allow you the ability to draw or transfer funds easily from one account to another or even a creditor or another person directly.

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The system of checking potentially dates back to Roman times, but did not really pick up popularity until the 1500’s. Holland was the first country to truly embrace the benefits of having a checking account. According to historians, the hub of checking activity was Amsterdam as they were a huge commercial center for shipping and industry. Because of the bustling economy, those who had cash opted to stow their money with Dutch cashiers as opposed to risk keeping it at home. Eventually the cashiers agreed to pay the debt of the depositors since they had their available cash and would make payment from one account to another based on the written instructions of the depositor, thus acting as a check.

The benefits of having a checking account were appreciated by the Dutch early on in the game and the advantages have certainly multiplied since then. If you take advantage of the checking account system, your financial life will become a little simpler.

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GOBankingRates Staff

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Benefits of a Checking Account
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