Consider the Benefits of a Checking Account
Checking accounts are a great means of documentation and for many, organization as well. If you are in the habit of paying bills with cash, consider opening a checking account. With either bank or credit union checking accounts, you will be provided with a monthly statement and cancelled checks for your own record keeping. In addition to the obvious organization benefits, checks provide a record of your money management abilities that future creditors can look upon in determining whether or not you are eligible for credit.
An additional bonus to opening a checking account is that checks are typically cheaper than purchasing individual money orders to pay bills. On the flip side, money in a checking account is money not in a savings account. Unlike most savings account plans, checking accounts rarely pay interest. Of course interest is a concept in which your return grows over time. In its simplest form, the longer you save the more money you earn. Additionally, the federal government insures savings accounts, making them a risk free investment.
Perhaps the best advice is to look into opening a savings account in which you intend to store your money and to use the checking account as it is needed by transferring the funds directly from your savings to cover the checks you write out. In this situation, unnecessary funds earn interest while you still reap all of the benefits of having a checking account.
