What you need to know about Checking Accounts

A checking account is one of the most important and useful tools you will use to manage your money.

Corey Blake with New Horizons Credit Union joined us on Studio10.  He discussed some of the questions and answers below.

What are some of the benefits of a checking account?
Writing checks or using a debit card is generally safer than carrying cash and can be used to make purchases nearly everywhere.  Making payments through a checking account is less expensive than paying for money orders and cashier’s checks. Direct deposit from your employer into your checking account is the easiest way to manage your paycheck. Paper and/or online account statements help you track your income and expenses. You can make purchases easily and access cash when you need it.

What should we look for when opening a checking account?
There are several types of checking accounts and it’s important to compare the fees, services and restrictions at each institution you’re considering. Most banks and credit unions offer similar types of checking accounts.  Basic Checking is designed for customers who only use their checking account to pay bills and daily expenses and who don’t keep a high balance in their account. Interest-Bearing Checking are were your deposits earn interest, and you have the same services as a basic checking account.
Some institutions are now offering rewards checking accounts that allow customers to earn points or “miles” for certain basic banking transactions.  Whichever account you go with, make sure you review the restrictions and fees schedules. Some checking accounts limit you to a certain number of checks per month, and if you go over that number, you could be charged for each additional check you write.  Would also look for checking accounts that are free from monthly charges, like you would find at your local credit union.

Any other tips to keep in mind?
The account you chose needs to match your financial habits. If it doesn’t, you could end up paying unnecessary fees and being frustrated with your choice. Ask yourself a few questions to help determine the right account for your financial habits:
*Do you write a lot of checks? Look for an account with unlimited checking.
*Do you use ATM’s frequently? Make sure that your institution has plenty of ATM’s in convenient locations.
*Do you occasionally bounce checks? You might want to look for an account that allows you to opt-in to overdraft protection.
*Do you plan to do some of your banking online? Look for an account that offers online transfers and bill payments.

If you have any questions or would like more information feel free to contact the folks at New Horizons.

New Horizons Credit Union
www.newhcu.com

Sponsored by New Horizons Credit Union