7 Benefits of Opening a Free Checking Account

free checking account

Millions of Americans haven’t yet taken advantage of free checking accounts at local banks or credit unions. There are many reasons for this, but one of those reasons could be that they aren’t aware of the major advantages of doing so. Indeed, opening a free checking account will provide your life with several immediate benefits.

Still don’t believe us? Read on to check out seven major benefits of opening a free checking account today.

Looks Good on Your Credit Report

For starters, opening up a free checking account looks fantastic on your credit report. Your credit report is a comprehensive history of your financial actions, and it’s what creditors or lenders look at when deciding whether to give you a loan. The better your credit report is, the better credit score you’ll have and the more likely you’ll be able to take out loans like mortgage loans.

You need a checking account to make payments toward debtors or utility companies in most cases. So having one gets your credit history started and allows you to build up your credit score if you haven’t begun already.

No Fees for Stashing Your Cash

In addition, free checking accounts are just that: free. That means you don’t have to worry about any fees for stashing your cash at a secure institution like a bank or credit union.

Fast and Quick Payments to Vendors

When you open up a free checking account, you can immediately make fast and quick payments to vendors, provided you have a linked mobile payment app or debit card. Cash App is a great example.

For instance, you can link your checking account to your Cash App account. Then, when you want to pay a friend or retailer, you can use your Cash App on your mobile device without having to swipe a debit card or fork over any cash. This is convenient, safe, and much easier than other payment methods!

Plus, you can link different data cards to your checking account via Cash App. The Yotta data card, for instance, offers a chance for free money via immediately reimbursing occasional purchases at all retailers. When you open a free checking account, you’ll be able to make payments more quickly and easily than ever before, whether or not you take advantage of Cash App’s free money offers or convenient functionality.

Keep Your Finances Secure

The most obvious benefit of free checking accounts is that they keep your money secure. If you have all of your funds in your wallet, that cash is at risk of being stolen or lost if you aren’t careful. If you lose your wallet, you also lose all your money.

Putting your funds in a free checking account means that you can’t lose all of your money at once. Even if the bank somehow does lose your money, the funds in your checking account will be FDIC-insured, so you’ll be able to recover them in no time at all.

Use Payment Apps Easily

With a free checking account, you can link that account to payment apps like the above-mentioned Cash App. In this way, you’ll be able to make payments to utility companies, retailers, subscription services, and even your friends and family members using services like Venmo.

Being able to use payment apps easily allows you to take advantage of modern technology and participate in the gig economy. 

Additional Bank/Credit Union Services

Many of the best free checking accounts come with membership into their associated banks or credit unions. Once you become a member, you’ll be able to access additional services such as:

  • Opening up other accounts, such as special checking accounts
  • Financial aid applications
  • Financial tutorials and resources like auto payment tools for paying your bills on time without having to think about it
  • And more

Opening a free checking account is one of the best ways to begin a financial relationship with a bank, which can open up new financing options for you later down the road. 

Options to Open Savings Accounts

Lastly, opening a free checking account often allows you to open a free or low-cost savings account at the same institution. Savings accounts are also valuable tools that allow you to save money over time for major expenses or for emergencies.

More importantly, savings accounts produce a small amount of interest each year, so whatever you put into them grows in value over time. Having a savings account is another good way to passively bolster your credit score, plus build up a credit history that lenders will appreciate later.

Bottom line: opening a free checking account is one of the best things you can do to bolster your financial wellness across the board. It opens the door to other financial opportunities in the future, too. Open a free checking account today!

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