Bottom line:
- A checking account is the hub for the money you need and spend every day.
- A debit card — which is linked to a checking account — can be used in person, through a digital mobile wallet, or online to pay for most things you buy regularly, and to take money out of ATMs.
- Having a checking account makes it safer and more convenient to manage your spending and pay for things.
Think of a checking account as your main hub for everyday money. Through your debit card, you get easy access to your money for daily spending and ATM cash withdrawals, plus it’s a place to deposit cash and checks or have money transferred into or out of your account. A checking account is also where paychecks are typically deposited — what’s called “direct deposit.”
Here are some more things a checking account does:
- Helps you manage your money: A checking account is a great tool for staying on top of cash flow. Through your credit union or bank mobile banking app, you can easily see what’s coming in and what’s going out, so you know what you can spend. The app also makes it simple to schedule recurring payments, deposit checks, and make loan payments.
- Adds convenience: Instead of carrying around cash, you can safely pay for nearly everything you need day-to-day — food, movies, streaming, gas, and more. Plus, you can set up automatic or one-time payments for things like your rent or mortgage, insurance premiums, credit card bills, memberships, subscriptions, and utility bills — no need to send a check or remember when a payment is due.
- Makes it simple to send and receive money: As your hub for everyday money, a checking account allows you to transfer money or get money from a company (like your employer) or a person.
- Keeps your money safer: You already know that stuffing cash in a mattress isn’t the best financial plan. And when cash is stolen, it’s gone for good. The federal government protects money deposited into an FDIC-insured bank or NCUA-insured credit union, up to $250,000. If you lose your debit card or it’s stolen, or your PIN is stolen, contact your bank or credit union ASAP by phone or the banking app to freeze or cancel the card. According to the Federal Trade Commission, you’re not responsible for any unauthorized charges or withdrawals from your checking account “if they happen after you report the loss.” Some financial institutions, like CEFCU, may also have cardholder protections, like Zero Liability Protection*, which also protects you against unauthorized transactions.
Explore more about checking accounts
Learn more about opening a checking account and explore these resources that help answer common questions about checking accounts:
►How do I use a checking account day-to-day?
►How is a debit card different from a credit card?
►How is my money protected when I use a debit card, and what should I watch out for?
►How do I choose the right checking account for me?
Reach out to CEFCU to learn more about checking accounts.
*Zero Liability: Pay only for purchases which you have authorized on your CEFCU Debit Mastercard. Unauthorized purchases are not your responsibility. Conditions and exceptions apply. Get details at https://www.mastercard.us/en-us/personal/get-support/zero-liability-terms-conditions.html.
