What Are Advantages And Disadvantages Of A Cheque Account?

The main advantages of a checking account is to save fees charged by storefronts that provide check cashing services and the ability to access funds by writing checks, instead of carrying cash around with you. Funds are kept in a secure environment, with accounts insured up to $250,000 by the Federal Deposit Insurance Corporation. Having paychecks automatically deposited to a checking account allows you to obtain your money faster, and it saves time and energy associated with depositing the check yourself.

However one of the biggest disadvantages of a checking account include the fees associated with using it. Fees may be a flat monthly rate, or per service fees that include talking with customer service. Some checking accounts require minimum balances of $100 or more. Often, banks sell this as an advantage for you to not be charged a flat monthly fee, or to earn a small amount of interest. The disadvantages include being charged fees if the balance falls below the required levels and not being able to access all of the money that belongs to you.

Overdraft fees are among the biggest disadvantages of using a checking account. Individuals are often caught by surprise thinking that they had sufficient funds for checks or debit card purchases. Banks charge overdraft fees even if the overdraft is only a few cents. They will attempt to process the check or debit a couple of days later, before a notice has been received by the account holder and after they have charged the initial overdraft fee to the account, which often results in another overdraft fee to the account.

Advantages:It is safer to carry checks than money. Another benefit of having a checking account is proof of payment. A canceled check is proof that you paid a bill. Also,   having   a   checking   account   is   convenient.   A checking account allows you to receive and spend your money without carrying cash. A checking account lets you pay your bills through the mail, rather than in person. Another benefit of a checking account is that it lets you establish credit.  A well-maintained checking account is an asset to establishing and obtaining credit. Finally,   a   checking   account   helps   you   budget   your money.  Keeping a record of checking  activities  helps you budget your expenses and income.

Advantages are you can pay off bills at the comfort of your home
disadvantages are you write out checks with not enough funds in your account you are hit with extra fees.