The Benefits & Drawbacks of Having a Checking Account

Checking accounts are among the most popular offerings of banks and other financial institutions. In spite of that popularity, use of checks among checking account holders is on the decline. Technological advances have changed the way we manage checking accounts. But although the small slips of paper don't pass as many hands nowadays, their accounts remain a strong component of our financial system.

Free

Unlike with money orders, stored value cards and most savings accounts, checking accounts (with direct deposit attached) allow the user to bank for free.

Check Cards

Writing checks can be time consuming. Using the check or debit card that comes with the account can save time and accounting errors because there is no waiting for the check to clear.

Bounced Checks

If there are insufficient funds in the account when a check is presented for payment, the account holder will incur a fee. These fees add up quickly and can lead to additional bounced checks because of a negative or significantly reduced balance.

Account Fraud

Although the potential for fraud is relatively low, it must be considered that checking accounts open the potential for account fraud or theft.

Easy Money Management

Checking accounts make bill paying a breeze. When you use direct deposit and online bill payment, you can do it all without writing a check or stepping foot in the bank.