Why is it necessary to have a checking account?

Opening a checking accounts makes finances much more organized and well accounted for. Checking accounts are bank accounts through which financial transactions can be made, as long as there is a minimum balance maintained.  Checking accounts can be used for a variety of purposes, including the following: 

• Bill payments: checking account makes it very easy to manage all the monthly bills, including the credit card payment, telephone and all the other utilities, along with paying rent. All this can be done by automated payment facility that the bank offers to the checking account holders.
• Check writing: Banks offer check leaves to make financial transactions easier. It is always a good idea to carry checks instead of actual cash, to make payments in places where credit cards are not accepted. Making payments through mails is also possible with the check facilities that the banks provide.
• Online banking: checking account holders can manage their accounts through online banking facility, since online banking is one of the most required facilities in today’s busy world. Money transfers, automated financial transactions, and many such facilities are available for the checking account holders nowadays to make life much simpler.
• Salary accounts: checking accounts can be used as salary accounts where the employee transfers the salary amount directly to the account. Cashing the paychecks by paying service charges is no longer necessary for a checking account holder.
• Overdraft protection facility: Many banks provide an overdraft protection for their checking account holders, wherein, the checking account can be connected to the savings account in the same bank or different banks. If an issued check bounces, then the sufficient amount of money is transferred from the linked savings account to the checking account, without any penalties or service charges. This facility puts an end to the worries of having to check the account before making the payments. 

Before opening a checking account in a bank, making sure of the following points is necessary: 

• Minimum balance requirements: Some banks have a high minimum balance requirement for a free checking account facility. If the balance is not maintained, then they charge a fee for continuing the services.
• Online banking: The internet banking facility should be provided free of cost, since that is an important and basic feature which connects a person to the bank from anywhere in the world. 

Making sure that the bank does not have hidden fees and service charges for the account is important before opening an account.