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Checking Out Checking Accounts

21 December 2009 2,092 views One Comment

The main purpose of a checking account is to provide a safer method than cash for making payments (bills, purchases) while providing a record of all the transactions, all activity, on the account.

Record keeping is a must and will serve you well over the years regarding the many monetary issues that you will have to handle, from returning a purchase to filing your taxes.

A checking account is an efficient vehicle that will provide you with a detailed accounting of all the activity and money that passes through the account:  deposits, withdrawals, fees, interest earned (if applicable), etc.

Do not link your checking account to any other accounts that you have.  Keep your checking account solely for the purpose of available cash and not as overdraft protection for your other accounts, for example.  Overdraft protection is wise for protecting yourself from being hit with fees, but remember that if any access to your checking account is ever compromised, you do not want to put your other accounts in jeopardy!  See:  How To Build A $avings Account

One Comment »

  • ches said:

    Thanks for posting this information. Very useful and also excellent.