Why you still need a checking account.
Key takeaways:
- Checking accounts are designed to help you easily manage your money on a daily basis.
- Paying bills, receiving paychecks and making purchases are easier with a checking account.
- Checking accounts offer convenience and flexibility to account holders.
- Many banks, including Commerce Bank, offer free checking account options.
From peer-to-peer payments to digital wallets and money orders, this digital-first world offers more ways than ever to manage your money. Checking accounts remain a core financial tool for everyday money management.
A checking account is a place to store your money and complete everyday financial activities like making payments and receiving paychecks. But, according to the FDIC, nearly 1 in 5 households opens in a new window may be missing out on the benefits a checking account provides.
Checking account basics:
- Free options – Free or low-cost checking account options may be available at some financial institutions. At Commerce Bank, our free checking account is available to support your daily money management.
- Convenient purchasing – Using a debit card to make purchases automatically withdraws money from your checking account and avoids the need to write a paper check.
- Easy way to receive income – Setting up direct deposit means your paycheck will automatically be deposited into your checking account, making your money available to you faster than a traditional paper check.
- Security, flexibility and convenience – Your money is protected in a checking account. Most banks are insured by the Federal Deposit Insurance Corporation (FDIC) opens in a new window.
What is a checking account?
Checking accounts are designed for everyday transactions — whether you’re making purchases in-person or online, receiving income or paying others.
For decades, consumers relied on paper checks to send and receive money. But as technology has advanced, a range of digital payment options has emerged, making transactions faster and more convenient than ever.
Today’s checking accounts have evolved alongside these innovations. They offer many of the same conveniences as peer-to-peer apps and digital wallets, while also providing added reliability and financial protection.
What is a checking account used for?
There are many ways a checking account can be used:
- Paying bills online or by check
- Receiving direct deposit, which gives you instant access to your money
- Making debit card purchases in-person or online
- Transferring money digitally
- Track spending through online and mobile banking
Why you still need a checking account today:
Your money is protected.
Most traditional banks, including Commerce, pay for FDIC insurance (Federal Deposit Insurance Corporation) opens in a new window, which means that in the unlikely event of a bank failure, the FDIC protects the money depositors place in insured banks. Each depositor is insured to at least $250,000 per insured bank. Some banks provide fraud protection services for unauthorized transactions, offering an added layer of security compared to cash and peer-to-peer app transactions. Commerce also offers Text Alerts to assist in notifying you if we detect potential suspicious activity on one of your checks as an additional line of defense against fraud.
Easier access to your money.
A checking account has a debit card that lets you pay for everyday expenses without needing to carry cash or write paper checks. You can also set up a direct deposit to make payday more convenient, since your money is typically available right away without waiting for a check to clear. With features like Early Pay at Commerce Bank, you may even get access to your paycheck a few days sooner.
If you need cash, ATMs make it easy to withdraw money on the go, and if you need a larger amount, you can handle that in person at a branch. Most banks also offer digital payment options, so you can send money, pay bills or manage your account from your phone.
Checking accounts can help you avoid extra fees.
Using a checking account can also help you avoid extra fees and stay organized. When you pay with a debit card instead of a credit card, merchants avoid paying processing fees that are often passed on to consumers through higher prices. This can help keep everyday purchases more affordable. A checking account also makes recordkeeping simpler, since your transactions are automatically tracked. Having a clear record of your spending habits can make budgeting, tracking expenses and managing your money easier over time.
How checking accounts work with modern payment tools.
Checking accounts and modern payment tools are made to work together:
- Digital wallets – Connect your checking account directly to your digital wallet to make easy, efficient purchases using your phone or smartwatch.
- Peer-to-peer payments – Use a service like Zelle® to send money to friends and family directly from your bank account to theirs, using your mobile app or online banking.
- Automatic bill pay – Checking accounts offer automated bill pay options, which allows you to schedule payments to ensure every important bill is paid on time, every time.
These tools add flexibility and convenience, but they all depend on a checking account to function. Rather than replacing checking accounts, they work best as extensions of them.
Is a free checking account right for you?
A checking account at a traditional bank is a strong foundation for everyday money management. It provides a secure place to receive income, pay bills, monitor spending and seamlessly connect modern payment tools while avoiding unnecessary fees and staying in control of your money.
A checking account is a good fit if you want to manage your money efficiently:
- No monthly service fee
- Simple, everyday banking
- Online and mobile access
Even in a digital-first world, a checking account provides peace of mind by keeping your money protected, accessible and organized.
Ready to get started?
Commerce Free Checking helps you manage your essential spending needs and requires only a $25 deposit to open an account. There is no monthly service fee and no required minimum balance. Visit your local Commerce branch to open an account or apply online now.
