Checking Accounts

Why get a checking account?

Convenience: If you have a checking account you can write checks to pay bills without having to go the financial institution or post office to buy a money order or cashier's check. You can also set up some amounts for recurring bills (such as rent or mortgage or a car payment) to be automatically withdrawn (debited) from your account, so that you don't even have to write checks for those.

Record Keeping: The canceled check (indicating that the check has gone to your financial institution and the sum has been drawn out of your account) is proof of payment. If a creditor believes he has not been paid, and you have paid him with a check, you can prove this by sending a copy of the canceled check (copy both the front and back) to the creditor.

Saving Money: Checking accounts typically cost from $5.00 to $12.00 per month. Some financial institutions offer free checking, and others offer free checking if a minimum balance is maintained. Even with a fee, this is cheaper than paying for each money order ($.80 to $8.00 each) or cashier's check ($5.00 to $9.00 each).