Checkless bank accounts eliminate the burden of writing and tracking paper checks. You pay for purchases with your debit card and track spending through your banking app rather than in a paper checkbook.
Let’s look at ways a checkless bank account may help you better manage your finances.
Benefits of checkless bank accounts
Checkless bank accounts are a simple and modern approach to banking. They offer many of the same benefits as traditional bank accounts and some unique perks.
1. Low-barrier banking
Many checkless bank accounts are considered second-chance checking accounts.
Second-chance checking accounts tend to have less stringent approval requirements than traditional bank accounts. This flexibility can be appealing if you have a banking history that bars you from being approved for a traditional checking account.
Additionally, fees and monthly minimum balances for checkless and second-chance bank accounts tend to be lower.
2. No more overdrafts
Some checkless bank accounts don’t allow overdrafts. If you try to make a purchase that exceeds your available balance, the bank will decline the transaction rather than overdraw your account. This feature can help you avoid unexpected – and expensive – overdraft fees.
3. Fewer fees and lower costs
A checkless bank account may make banking more affordable if the account you choose offers low monthly service fees and low monthly minimum balance requirements. Some banks may waive the monthly service fee for your checkless bank account altogether if you meet specific requirements, such as making regular direct deposits.
4. Reduced financial risk
Checks display sensitive information like your full name, address, bank account number and routing number. Avoiding them altogether can reduce the risk of this information falling into the wrong hands – and your risk of check-related fraud.
To further protect you, some checkless banking accounts offer zero liability protection. This feature allows you to report and be reimbursed for unauthorized debit card transactions. If your account includes this feature, you may need to report unauthorized transactions within a certain time to be eligible for reimbursement.
5. 24/7 digital access to account activity
With a checkless bank account, you can review your transactions anytime through online tools, such as mobile apps and web portals. You never need to worry about misplacing your checkbook or forgetting to record a recent transaction.
6. Access your funds faster
Even if you choose to stop using checks, other people and businesses may continue using them. So, what happens when you need to deposit a check into a checkless bank account?
If you’d prefer to visit a local branch to deposit your check, you can do so. However, most banks allow you to conveniently deposit checks you receive to your checkless bank account through your mobile banking app. This can save time and energy spent driving to the bank – and may even help you access your money sooner.
Some checkless bank accounts also partner with digital payment services to make and receive instant digital payments and transfers. These digital transactions are usually faster than waiting for a check to be processed and cleared.
7. Free tools to help you manage your money
Many checkless bank accounts come with financial awareness tools that may help you manage your money more effectively. For example, some second-chance bank accounts offer real-time spending alerts. These instant transaction notifications usually appear as push notifications on your phone shortly after you use your debit card and can alert you to overspending and unauthorized transactions.
You may also benefit from automatic bill pay, which simplifies the process of paying common household bills by avoiding the need to write, mail and track paper checks.
Some banks with checkless bank accounts also offer built-in budgeting tools in their mobile banking apps. These tools vary but may include features to support you as you set savings goals or track your spending.
Simplifying your financial life with a checkless bank account
Whether you want to avoid the clutter of piled-up paper statements or save time depositing funds, checkless banking may help you make your finances simpler to manage. If you’ve experienced challenges with traditional banking, a checkless bank account may also act as a “second chance” account.
Consider these benefits the next time you’re looking to simplify how you handle your funds and transactions.
Disclaimer: Article content is intended for information only. It may not reflect the publisher nor employees’ views. Consult a financial professional before making financial decisions. Publishers or platforms may be compensated for access to third party websites.