When opening a deposit account, many people often start with a savings account. This savings product is great for starting to build your wealth, as it lets you set aside money while allowing it to grow over time.
But did you know that a checking account can also play an important role in managing your finances? When used strategically, it can support your everyday banking needs.
What is a checking account?
A checking account is a type of bank account that comes with a checkbook, designed for frequent or routine deposits, withdrawals, and payments. Unlike a savings account, which is primarily intended for setting money aside, a checking account is better suited for handling everyday financial transactions.
Depending on the bank, it may come with features that make routine transactions more convenient. Opening a checking account with EastWest, for instance, comes with an EastWest Visa debit card and access to the EasyWay app.
Why open a checking account?
In addition to keeping money ready for daily use, opening a checking account with a bank that understands your everyday banking needs can improve how you manage your day-to-day finances. Here’s how this type of account can work to your favor:
1. You’ll have an easier time separating your spending from savings
It can be hard to tell how much money you have left for everyday expenses when your spending money and savings are kept in one account. With both funds mixed together, your available balance may look larger than the amount you can actually spend. This may cause you to accidentally use money that was meant for your savings or other purposes.
A checking account can help you avoid dipping into your savings account for routine purchases. You can use it as a dedicated account for daily transactions, separate from the funds you want to keep untouched. This way, you can ensure that the money in your savings remains reserved for your goals and can grow steadily over time.
2. You can make payments with checks
Even though digital payment methods have become a popular and convenient way to pay, there are still situations where a check may be required.
Some businesses, organizations, landlords, and government offices prefer payments made by check, especially for transactions that involve larger amounts, require a paper record, or a form of guarantee (through post-dated checks).
3. You’ll have higher withdrawal and transfer limits
Certain situations, such as paying for major purchases or transferring funds for business or personal obligations, may require you to move more money than usual. Your regular savings may prevent you from completing these tasks, as banks often set stricter transaction restrictions for this type of account.
A checking account, however, typically supports these needs by offering higher withdrawal and transfer limits. This can reduce the need to split a transaction into multiple payments or wait until your limits reset before completing a transfer. This makes it easier to handle larger financial commitments without disrupting your plans.
These transaction limits vary by bank and account type, though. Reviewing the terms beforehand can help you choose a checking account that fits the way you manage your money.
4. You can earn interest with some checking accounts
Standard checking accounts don’t make great products for growing your money, as they don’t usually come with interest rates. However, some banks offer interest-bearing checking accounts that let you earn some interest while still enjoying the convenience of a checking account.
EastWest offers two interest-earning checking accounts: ChequeMax and Super Checking. Both share the same base interest of 0.100% p.a. Each account, however, has different requirements and perks. A closer look at their features can help you decide which account best matches your financial goals.
5. You’ll have more ways to store and access your funds
One of the biggest benefits of opening a checking account is that it can expand the way you use your money. This type of account has more payment and access features than a standard savings account, which can be convenient when you need to handle different kinds of transactions.
In short, using a checking account alongside your savings account can give you greater flexibility while helping you keep your money accessible when needed.
A checking account can be worth considering when your banking needs become more active. It gives you room to handle money in ways that a basic savings setup may not fully support. With the right account, routine banking tasks can feel more practical and easier to manage.
Open an EastWest checking account today and experience greater flexibility in your everyday banking.
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