While most look at the advantages it brings, few understand the cons of a checking account. Using paper checks was a great way to avoid carrying cash when the concept came to be. Today, however, with declining acceptance of checks at businesses, along with increased attacks on personal identity, even owning checks can be an unneeded amenity.
The first problem with owning checks is keeping track of them and making sure they are always safe. If any person is able to gain access to the checks, they can not only drain a bank account, but also rack up hundreds of dollars in overdraft fees. The most pertinent and valuable information, though, is contained on the bottom of checks.
In order for checks to be processed correctly, the routing number of the bank, as well as the account number for the checking account is always printed on the bottom of paper checks. These vital pieces of data are more than enough to cause financial harm if attained by the wrong person. Electronic checks can be processed over the internet without the owner’s knowledge causing the same ill effects stated previously.
Another disadvantage is the cost associated with ordering. All checks that can be drawn on an account come with a price. Some may even include shipping charges for the mailing.
Additionally, duplicates and any old checks must be disposed of properly to avoid the leaking of the important material already discussed. Some banks offer shredding services, although there may be a fee associated with such. This extra precaution and time may not be worth the effort if other means of fiscal management is possible.
Banks must make money. However, owning a checking account, in some instances, is costing account holders a fortune. Some banks charge for the use of a teller, the ATM machine, and even fees for not having direct deposit or maintaining a certain balance. This can add up to quite an expense just to have a relationship with an institution.
Finally, more and more businesses are refusing to accept check payments. In the past, it seemed checks were accepted for anything and everything. Today, though, more and more signs are posted on businesses stating their refusal of this particular payment form.
When considering a checking account, it is important to look at all aspects. Not all good comes from utilizing this service. The best way to manage money is finding methods that do not allow for the theft of crucial information and does not cost a great deal of hard-earned money to maintain.