The main reason why people don't have an online checking account is because they don't know about the benefits, flexibility and freedom it can provide for them.
Here are five reasons why you might not have a free online checking account and why you should consider opening one through a credit union.
1. You think your checking account will cost money.
Deer Valley Credit Union in Phoenix offers a no fee checking account. There are no maintenance fees and no monthly minimum balance required. Some institutions will charge a monthly fee unless the member sets up direct deposit or maintains a minimum monthly balance. This can be frustrating if an emergency purchase near the end of the month depletes the account and then the customer suddenly learns that they have been hit with a fee. Other institutions will charge a fee unless the monthly balance stays above a minimum amount, such as $300 per month, for 30 consecutive days. This is why many Valley of the Sun customers enjoy having a credit union checking account with no hidden fees.
According to Black Enterprise, using a no monthly minimum checking account is actually the cheapest way to manage all of your financial transactions. A 2015 study by the Federal Deposit Insurance Corporation (FDIC) found that almost one in five households in America are not taking advantage of online checking. The FDIC found that instead, families are relying on check cashing services, payday loans and other expensive options.
2. You don't think you can earn cash back.
Earning cash back on purchases only applies to credit cards, right? Not with many free online checking accounts. If you set up a direct deposit of at least $500 per month, eStatements and online banking, you can start earning money back. You'll immediately begin earning .25 percent cash back on eligible purchases that you make with your Visa® debit card.1
3. You don't think it is convenient.
A no fee checking account is all about your convenience. You can pay your bills online; there is no more need to mail a check or to pay your bills with cash. You can view your current and past account statements and print or download them. You can even set up email and text alerts2 so you'll never miss paying a bill on time.
4. You think there are no added benefits.
A fee free checking account offers a lot of additional benefits. When you use direct deposit, your paycheck goes straight into your local checking account and you don't have to wait for the check to clear. Your Visa® debit card lets you make purchases at millions of stores worldwide. Some credit unions even offer a free box of checks each year for opening a checking account at a branch office.
5. You don't know about the loan programs.
Once you become a member at a credit union, there are multiple loan options that you can apply for to move forward in life. You can open up a line of credit with flexible terms and competitive rates. If you're shopping for a car, your no fee checking account could be the stepping stone to an auto loan. Members can also apply for a home mortgage loan.
1 You must be a member of Deer Valley Credit Union, have a fully qualified Participation Account, maintain qualification, and your accounts must be kept in good standing. To fully qualify for the Participation Account, you are required to maintain active direct deposit ($500/month minimum) and enroll in Remote Banking and eStatements.
2 Data charges from your carrier may apply.