8 Key Advantages of Checking Accounts to Know

Advantage #2: Some checking accounts can earn interest

Though it’s often a feature that’s associated with savings accounts, some checking accounts can also earn  interest. This unique advantage allows you to grow your balance while keeping your funds easily accessible for daily transactions. The interest rates are often lower than those offered for saving accounts, but interest-earning checking accounts can offer a happy medium between a traditional non-interest-earning checking account and a savings account.

BMO’s Relationship Checking account, for instance, is an interest-earning checking account that rewards customers with higher rates on money market accounts and perks through the BMO Relationship Checking Relationship Packages* 

Advantage #3: Ability to set up direct deposits

Having a checking account also lets you set up direct deposits. A direct deposit is a way for payers to send payments straight to a payee’s account, rather than the payee having to deposit the payment themselves, such as with a paper check.

They are great for receiving payments like paychecks, income tax refunds and federal benefits. Additionally, direct deposits offer extra security because they reduce the risk of lost or stolen checks, ensuring your cash lands safely in your account every time without the need to visit a physical bank branch.

Advantage #5: Check-writing privileges

Even though so many of our transactions these days are done paper-free, there are times when paper is still appreciated.

What happens if your old-school landlord prefers paper checks for your rent payments? Or if you want to give your friend a monetary wedding gift? Whatever the reason may be, if you need to write a personal check, a checking account is essential.

Advantage #6: Ability to track spending

When it comes to spending, a checking account can help you reliably and easily track where your money is going. Every account offers a centralized record of your deposits and purchases, giving you a clear view of how much money is coming into your account, and how much is going out.

If you’re wondering how much you spent on groceries last week, or you’re looking to create a budget, the first step is to take a look at your checking account activity.

Additionally, checking accounts often come with added features that make it easy to monitor your spending and pay bills on time. BMO Total Look, which is available with a BMO checking account, is a great example of a free money management tool that helps you track your spending and review all your bank accounts (not just the ones at BMO) in one convenient place.

Advantage #7: Access to digital payments

With a checking account, you can also get access to various digital tools and services. For one thing, you’ll be able to pay for goods and services online with your debit card. For another, it gives you the opportunity to use a digital wallet (e.g. Apple Pay^®, Google Pay^TMor Samsung Pay^TM) when shopping at a growing number of stores that have embraced contact-less payments. And then there’s the ability to digitally send and receive money to someone living in the U.S. with digital services such as Zelle^®. 

Advantage #8: Convenient access to ATMs & branches across the U.S.

As our world grows increasingly cashless, a debit card – which you receive upon opening a checking account – makes day-to-day purchases easy. Simply tap or insert your debit card into a retailer’s card reader at checkout to pay directly with the money in your checking account.

A debit card allows you to withdraw cash from your checking account or other linked accounts at any ATM conveniently located near you or a bank branch. To find your nearest BMO branch, check out our branch locator tool.

Final thoughts

From making deposits and purchases to paying bills and tracking your daily spending, a checking account has a lot to offer. When leveraged to its full potential, a checking account can prove to be a valuable addition to your financial toolbox.

If you’re in the market for a new checking account or looking to make a switch, BMO makes it easy with our bank switch kit. With the right checking account, you can take control of your finances and reach your financial goals.