Why you still need a checking account.

From peer-to-peer app payments to prepaid cards, digital wallets, money orders and even cryptocurrency, it seems there are more ways than ever to manage your money. But there are still important reasons opens in a new window to have a checking account — namely, a checking account is a safe place to store and save money. And many banks, including Commerce Bank, offer free checking accounts.

According to recent data from the FDIC, about 5% of American households are “unbanked” opens in a new window — meaning no one in the household has a savings or checking account at a bank or credit union, and another 14% of households are underbanked, meaning they are relying on non-banking tools such as a money order or payday loan. In other words, nearly 1 in 5 households may be missing out on the multiple benefits checking accounts provide. We’ll walk you through those benefits below.

Your money is safe.

• Keeping your cash at home puts you at risk of theft, fire or damage. Depending on your homeowners or renters insurance limits, you might not be covered for the entire loss.
• Most traditional banks pay for FDIC opens in a new window (Federal Deposit Insurance Corporation) insurance, which means that in the unlikely event of a bank failure. The FDIC protects the money depositors place in insured banks in the unlikely event of an insured-bank failure. 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.
• Federal laws protect you in the event of a debit card error or unauthorized electronic transaction as long as you notify your bank in a timely manner.
• You can add overdraft protection to ensure that you never bounce a check or miss an important payment.
• You can also add identity protection measures to reduce the likelihood of identity theft.

You can skip transaction fees.

• Some small businesses and government sites prefer being paid by check, so they charge a transaction fee of between 1.5% and 3.5% if you use a credit card.
• Some small businesses may not accept online payments at all, and writing a check ensures you have an official record of the transaction, rather than paying in cash.

Get instant access to your paycheck by using direct deposit.

• Many employers offer to pay their employees by using direct deposit, which ensures you get paid the day the funds are made available, with no need for a paper check or a visit to the bank.
• With programs like Early Pay, you may be able to access your recurring direct deposit up to two days early.¹ Early Pay is one of the many features included with Commerce checking and savings accounts.

You’ll get free tools to help you manage your money.

• Keeping track of where your money is going can be tricky at times. Checking accounts can provide both a digital and paper trail for all transactions, allowing you to track expenses, withdrawals and deposits to the penny.
• You can set up automated bill pay to ensure that important bills get paid on time, every time, or set up email and text alerts so you know when your balance gets below a certain threshold.
• Person-to-person payments are becoming more common. If you need to make or receive a payment, Zelle^® allows you to send money to friends and family directly from your bank account to theirs, using your mobile app or Online Banking.²

Build a brighter financial future.

• Having a checking account is often a prerequisite for applying for credit, loans and other financial products. It’s the foundation upon which you can access additional services your bank provides.
• It’s important to build a relationship with a bank and establish yourself as a responsible financial citizen. It means that when you’re ready to make a big financial decision like buying a home or starting a business, you already have someone on your side.

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.