Do you have a checking account? If not, you could be spending lots of unnecessary money. In this money-saving tips article, the pros of a checking accounts will be revealed.
Cashing checks at check-cashing stores and supermarkets can cost you a lot in the long run. Many places charge between 5-10% for cashing your paycheck. When you have a checking account, you get to keep your ENTIRE paycheck! Think about how much money you could be giving someone else….
— If you get paid $500 every two weeks and your check-cashing places charges 5%, you will pay them $50 per month and $600 per year!
— Plus, if you pay all your bills by money order and the average money order costs $2.00, you pay (if you have about five bills per month) $120 per year!
— By having a checking account, you can save about $720 per year!
WHAT CAN YOU DO WITH $720? (And that is a low estimate.)
There are many other reasons to open a checking account. Let’s take a look:
— You can usually acquire a debit card, which can be used like a credit card for buying things online or making online payments, etc. Plus, you can use it instead of cash when shopping and for the ultimate convenience, you can pay at the pump when getting gas!
— You can set up autopay for utilities by providing your routing and account number to the billing department. This is safe and can save postage, save paper and help you pay bills on time-which can also reduce late fees. With this technology you no longer have to remember to send the bills. (Just remember when the money is getting deducted.)
— Carrying around a checkbook or debit card is much safer than carrying cash. If you lose your checks or debit card, you can call your bank and report the card missing or stolen and also cancel the checks you lost. If you drop a $20, you are out of luck.
— Paying by check allows proof of payment, which you don’t get with a money order. If you need to prove you paid for something, you can obtain cancelled checks from your bank. In fact, many online banking programs allow you to get them right online.
— Build an account history with a bank, maybe can help with future loans– this is especially true with credit unions. Also, when applying for a mortgage, the lender may want rent reciepts. If you do not have receipts, you can get the rental checks from the bank.
Finally, the best reason to have a checking account is:
— You can get direct deposit, which means most times the checking account fees are waived by the bank since they know there will be regular deposits. Plus, this is more convenient. Your money is there like magic on payday! You don’t have to wait for the boss to pass out the checks, or wait in line at the bank. Voila! It is there.
So, the next time you cash a check at the grocery store or write out a money order, remember how much extra money you could have by opening a checking account, as well as how much time you could save.