Most of us remember our parents -- or grandparents -- writing a check to pay for the groceries or mailing checks when they paid their monthly bills. Yet few of us have used physical checks regularly in the last 20 years. Part of that may be because we move frequently, and ordering new checks with our most recent move is tedious.
Over the last 20 years, we’ve seen mobile banking flourish, giving us the option of depositing our birthday checks (from our grandparents) on our smartphones. We can also transfer money quickly between accounts at our bank and see our balance 24/7. One thing that hasn’t changed over the years, though, is the benefits of having a checking account.
Why Checking Accounts Are Still Necessary
According to the Federal Reserve, approximately 94% of American adults have a bank account, the majority of which are checking accounts. The ubiquity of this product highlights how checking accounts can play an important role in helping Americans access a broad range of financial services -- well beyond just paper checks.
Having a checking account gives you the option of writing a check, but combined with mobile banking, it also allows you to use that account to transfer money, pay bills and know your exact balance without crunching the numbers.
“Having access to your checking account balance through your debit card and smartphone may make it too easy to spend money, but there are ways your financial institution can help you stay within your limits,” said Tynika Wilson, senior vice president of debit cards at Navy Federal Credit Union.
How to Make Your Checking Account Work for You
When looking for a place to open a checking account, you’ll want to research the options each institution offers. You’ll want to clearly understand the fees, including overdraft fees and the minimum amount you must keep in the account. Many accounts, including those from Navy Federal Credit Union, offer no monthly fees or minimum balance requirements.
“A checking account should give you the freedom to spend the way you live. Prioritize an account that can set alerts, schedule automatic transfers or provide budgeting,” said Jaspreet Chawla, senior vice president of savings products at Navy Federal Credit Union.
Most financial institutions allow you to have many checking accounts, which is beneficial when saving or spending for different things. For example, you may want to open a checking account for you and your spouse’s fun money or an account to help your kids learn about money management. Some like to have an account for travel or one to pay for home repairs. You can then set up automatic transfers and even have multiple debit cards or checkbooks for each one.
If you are sending or receiving money through Zelle, PayPal or another payment app, it is important to make sure your checking account is compatible with them. You can also look at other financial tools the institution offers, such as budgeting tools and preparation for retirement.
How Modern Checking Accounts Make It Easy to Track Your Balance
While budgeting and tracking spending can be a menial task for some, it’s an important part of ensuring your financial well-being. And thankfully, most checking accounts offer tools that make it easier than ever to stay on top of your account balance. For example, many banks or credit unions allow you to set up specific alerts for transactions, so you’re not surprised by an unexpected charge.
Finding the best checking account shouldn’t be based only on convenience. Consider how you’d like to organize your spending money and what makes sense for your lifestyle. The ease of online banking and banking apps, along with features such as automatic payments and alerts, means checking accounts are even more convenient in today’s world. So do you still need a checking account in 2024? The answer is yes, definitely.
You can trust Navy Federal Credit Union to grow with you as you plan your financial future. Consistency, trust, flexibility and convenience are all important. Learn more about their checking options online.
Navy Federal is federally insured by NCUA.
