11 Checking Account Features That You Should Be Using

Checking accounts are the mainstay of banks and credit unions. Aware of this much-needed service, banks and credit unions are working to make it easier and more convenient for you to manage your finances and access your cash.

From mobile banking to fraud protection, here are 11 checking account features that you should be using to avoid late bill payments, improve your budgeting, and thwart potential hackers and fraudsters.

1. Mobile and online banking.

There’s a reason almost 80 percent of Americans love banking through a mobile app or website as reported by a 2023 Forbes Advisor U.S. Consumer Banking Statistics study.

Gone are the days when you had to visit a physical branch to do your banking or apply for a loan. Today, mobile and remote banking allows you to securely and instantly deposit checks, transfer money, pay bills, apply for loans, and more, all from your smartphone, laptop, or desktop.

2. Direct deposit.

Direct deposit is typically how you receive your paycheck, and it removes the need for traditional paper salary checks. Additionally, any payment or transfer can be directly routed from a payer to a payee’s bank account, including tax refunds and Social Security benefits.

The money is digitally routed through the Automated Clearing House (ACH), a network of financial institutions that move money. The funds travel from the payer, an employer or other entity, to your bank. Your bank then places the funds in your checking account.

Some banks offer early direct deposit. With early direct deposit, funds are credited to your account prior to the date stated by the payer.

3. ATM network and fee reimbursements.

Most banks offer access to ATMs through a network. Banks and credit unions may have their own ATMs at branches, but they also may tie in with an ATM network so that members can access their cash at other ATMs at other banks and nonbank locations like grocery stores and gas stations.

When you use an ATM at a location other than your bank or credit union and at an out-of-network ATM, you may be notified that you will be charged a fee. However, many banks offer some reimbursements for those ATM fees. Check with your bank to find out their policy on reimbursements for out-of-network ATM fees.

4. Bill pay.

Bill pay is a convenient checking account feature that allows you to pay bills online. Checking account holders provide the details of payees, and the bank sends the funds through electronic payment or mails a check. Bills, such as utility bills, insurance premiums, credit cards, loans, or any invoice can be paid in this way, automatically, each month.

Once set up through a website or mobile app, paying bills is easy. Moreover, if you set up automatic bill payments, you can rest assured that your bill will be paid on time without you having to do anything.

5. Interest-bearing checking accounts.

Not all banks or credit unions offer interest-bearing checking accounts, but some do. The interest rates typically tend to be on the low side, however. This is because checking accounts are by nature designed for spending and depositing cash, and the bank cannot typically plan on using your funds for loans elsewhere.

High-yield checking accounts offer higher interest rates than regular checking accounts but may come with certain requirements like: using your debit card a certain number of times each month, enrolling in direct deposit or ACH payments monthly, and/or enrolling in online banking.

6. Debit card advantages.

Who doesn’t have a debit card? According to The Motley Fool Ascent, the answer is just 7% of Americans. Debit cards are more popular than credit cards; they are convenient and accepted almost everywhere. While 93% of U.S. adults have a debit card, 82% have a credit card.

Debit cards are worth their weight in gold. They’re convenient, they don’t charge interest because you are not borrowing money, and they come with fraud prevention features like chips, PINs, and fraud monitoring by your institution.

7. Transfers between accounts.

Many people have multiple personal accounts and business accounts. Most banks will allow you to transfer money internally between checking and savings accounts using online or mobile banking. If you transfer money to or from a different financial institution, there may be a fee. Some banks offer the Zelle platform, and most will offer wire transfers to move money to other recipients. A fee will be charged in these cases. Before you transfer money, be sure to check whether your bank charges a fee.

8. Alerts and notifications.

Digital technology makes it easy for your bank to send you timely alerts. They can be sent via text, email, or through an app. Alerts can help you better manage your money and protect you from fraud. Here are some alerts you may want to consider setting up in your bank profile.

• Low balance – Your bank will tell you when your balance drops below a specified amount.
• Bills due – Don’t miss payments that are due by activating an alert for a service provider or creditor.
• Large purchase – Receive an alert when a significant expense is charged to your debit card or checking account.
• Large ATM withdrawal – Receive an alert when an unusually large amount is withdrawn from your account via an ATM.
• Exceeded budget – A note about your budgetary misdeeds will help keep you on track spending wise.
• Unusual activity – This alert protects you from fraud as you can let the bank know if a charge is valid.
• Fees – You can set notifications to alert you when fees are charged.
• Password change – This alert also protects you from fraudulent activity by warning you that someone could be trying to access your accounts.

9. Overdraft protection.

Overdraft protection can be a Godsend if you tend to overspend or you don’t pay close enough attention to your checking account balance.

An overdraft occurs when you do not have enough money in your checking account to cover a transaction, but your financial institution pays it anyway. Bill payments, electronic transfers (ACH Debits), check transactions, and recurring check card transactions (e.g., gym memberships), could all potentially overdraw your account if you have a low balance, but your financial institution (at its discretion) will authorize and pay them up to a certain amount. You are charged a fee each time this happens.

Be sure to familiarize yourself with how your checking account’s overdraft protection features work. Find out what the fees are, the different levels of protection, and how you enroll. That way, you can decide whether you need overdraft protection and whether it is worth the cost.

10. Automatic payments.

Automatic payments, or AutoPay, is similar to Online Bill Pay. From your bank’s website or mobile app, you can input the details of service providers and merchants and designate monthly payments to them. This feature can be used to pay utility bills, credit cards, loan payments, mortgages, and much more. This can be useful if you sometimes forget to pay your bills on time, which can negatively affect your credit score and incur late charges and interest charges.

The difference between automatic payments and Online Bill Pay lies in the level of control you have. With Online Bill Pay, you authorize each bill before it is paid, and you can adjust payments. With AutoPay, the payments are sent by the bank automatically from your checking account, so it’s important to make sure there are enough funds in your account to cover the payments.

In short, AutoPay works for fixed and predictable transactions because you don’t need to review the transaction or make changes. Online Bill Pay is best for payments where you need some flexibility and control.

11. Fraud protection.

Many people are wary of online and mobile banking because of the risks related to fraud. However, banks take fraud seriously. Reputable financial institutions develop applications using secure coding techniques and follow regulatory guidance for fraud protection.

For example, many online banking platforms use multi-factor authentication to safeguard your accounts when logging in remotely. Multi-factor authentication adds an additional layer to the login process on top of passwords. Typically, a numerical code is sent to your phone when you log in. Facial recognition is also becoming a popular way to secure logins.

Transaction alerts, which we explained earlier, are another feature that protect against fraudulent activity. Also, artificial intelligence-based solutions are constantly updated and used to guard against fraudsters and hackers.

“Behavior intelligence” is now used by financial institutions and consists of machine-learning technology and AI detection that can look at your behavior and location to determine if a transaction could be a fraudulent one. That’s why it’s a good idea to let your bank know if you are traveling. That way, if you use an ATM in a foreign country, your financial institution will not flag it as possible fraudulent activity.

Explore your checking account features.

Financial institutions are constantly innovating to provide better service to their customers. Much research is done to find out what you, the customer, want and need, including tools to help you manage your finances and solutions to protect you from fraud. Check out what your bank or credit union has to offer to ensure you’re getting the most out of your checking account!