Benefits of a Checking Account

Home Blog Benefits of a Checking Account

Posted On: November 17, 2022 by Peoples Bank of Kankakee County in: Personal Finances Saving

You could hide your money under a mattress and pay cash for everything. But that’s not a wise decision. Today, most of us find a checking account to be a safer alternative.

A checking account is a type of deposit account that allows you to easily move money from one place to another. It makes everyday transactions convenient. You deposit money from one or more sources (either in person or by utilizing direct deposit, mobile deposit, or an ATM), and then disburse that money to pay bills or make purchases efficiently. The funds in your checking account can be withdrawn by cash withdrawal at a bank branch, check, debit card, ATM, mobile wallet, or online transfer.

What’s the Difference Between a Checking Account & a Savings Account?

The biggest difference is as simple as it sounds. Savings accounts are used to save your money and accrue interest. Checking accounts are for everyday spending and bill payment. Many people utilize their checking account as a tool to stay within their budget and allocate what is meant to be saved to a savings account.

Benefits of a Checking Account

Here are the benefits of owning a checking account:

A checking account is a safe place to store your money and allows the safer option of not carrying cash. The funds in your checking account are insured by the FDIC. With this insurance, up to $250,000 in your checking account is protected in the event your FDIC insured bank fails.
A checking account teaches young adults about money management. This includes learning to write checks, pay bills on time, balance a checkbook, and plan for future expenses.

A checking account provides proof of payment. If a biller disputes your payment, a checking account gives you proof in writing that payment was made. This is commonly referred to as an audit trail.
A checking account allows you to establish and build your credit history. Credit history becomes important when applying for a loan.
A checking account helps you save money. Service fees like check cashing fees, ATM usage fees, and late bill payment fees can add up. Using checking account services like direct deposit and automatic bill payment can be quite a money saver.
A checking account can earn interest so your money can grow.
A checking account allows you to conveniently receive direct deposit, giving you access to your money sooner than a paper check.
A checking account gives you peace of mind knowing you can conveniently manage your money via the branch, ATMs, website, and mobile site.

To learn more about the personal checking accounts Peoples Bank offers, click here. Call, stop by, or open your new checking account online today!

An overdraft occurs when you do not have enough money in your account to cover a transaction, but we pay it anyway. We can cover your overdrafts in two different ways:

We have standard overdraft practices that are available after your account has been open for 30 days and as long as you maintain your account in good standing.
We also offer an overdraft protection plan, Overdraft Protection Sweep, a link to a savings account. It may be less expensive than our standard overdraft practices. To learn more, ask us about this plan.

This notice explains our standard overdraft practices.

What are the standard overdraft practices that come with my account?

After your account has been open for 30 days and as long as you maintain your account in good standing, we do authorize and pay overdrafts for the following types of transactions:

Checks and other transactions made using your checking account number
Automatic bill payments

We do not authorize and pay overdrafts for the following types of transactions unless you ask us to (see below):

ATM transactions
Everyday debit card transactions

We pay overdrafts at our discretion, which means we do not guarantee that we will always authorize and pay any type of transaction.

If we do not authorize and pay an overdraft, your transaction will be declined.

What fees will I be charged if Peoples Bank of Kankakee County pays my overdraft?

Under our standard overdraft practices:

We will charge you a fee of up to $30 each time we pay an overdraft.
The maximum daily overdraft fee per presentment or item paid using the Overdraft Reserve Program is $150.00 per day.
No per item handling fee will be charged on de minimis overdrafts. De minimis overdraft for this policy means transactions that overdraw your account by $30 or less.
There is an overdraft fee of $5 per day that will be charged beginning the 4th consecutive business day your account is overdrawn.

Nonsufficient funds (NSF) fees - if an item drafted by you (such as a check) or a transaction you set up (such as a preauthorized transfer) is presented for payment in an amount that is more than the amount of money in your account and we decide not to pay the item or transaction, you agree that we can charge you an NSF fee for returning the payment. Be aware that such an item or payment may be presented multiple times by the merchant or other payee until it is paid, and that we do not monitor or control the number of times a transaction is presented for payment. You agree that we may charge you an NSF fee each time a payment is presented if the amount of money in your account is not sufficient to cover the payment, regardless of the number of times the payment is presented.

PAYMENT ORDER OF ITEMS - The law permits us to pay items drawn on your account in any order (for purposes of this section "items" means checks, orders and electronic transactions). To assist you in handling your account with us, we are providing you with the following information regarding how we process those items. When processing checks and orders drawn on your account our policy is to pay lower numbered checks and orders in numerical sequence, but electronic transactions are paid first in the order received. The order in which items are paid is important if there is not enough money in your account to pay all of the items that are presented. There is no policy that is favorable in every instance. If the smallest items are paid first, you may have fewer NSF or overdraft fees, but the largest, and perhaps more important items (such as rent or mortgage payments) might not be paid. However, if the largest items are paid first, your most important items might be paid but it may increase the overdraft or NSF fees if funds are not available to pay all of the items. We think our policy attains a reasonable balance between minimizing additional costs to you and paying your more important items. We encourage you to make careful records and practice good account management. This will help you to avoid creating items without sufficient funds and incurring the resulting fees.

What if I want Peoples Bank of Kankakee County to authorize and pay overdrafts on my ATM and everyday debit card transactions?

If you also want us to authorize and pay overdrafts on ATM and everyday debit card transactions after your account has been open for 30 days, you may opt in.

You have an ongoing right to change this consent at any time. If your overdraft privilege has been revoked for any reason, the opt-in or opt-out selection may not apply. Please contact your nearest office for more information.

Alternate ways to Opt In/Out or make changes:

By Phone. Our Customer Care Representatives can be reached at 815-936-7600.
By Mail. Peoples Bank of Kankakee County, 333 E. Court Street, Kankakee, IL 60901
In Person. Please visit your local office and ask a representative to help you decide which plan is best for you.