| One of the perks of being financially independent has | | | | relative ease through the use of personal checks. |
| something to do with that warm glow you feel as | | | | This eliminates the need to go to a bank every time |
| soon as that first paycheck comes in. Unfortunately | | | | cash runs out. You can spend your money through |
| this perk comes coupled with a dilemma. What do | | | | checks anytime you please; you should be careful |
| you do with such a significant amount of money? | | | | enough to track your spending, though, as there is a |
| Probably the best way to deal with this is to keep | | | | possibility that you could overdraw your account. |
| your money in a bank account for safekeeping. You | | | | Writing and releasing a check without the funds to |
| can be sure that it would be secure, all the while | | | | back it up results in a bad credit rating. The bank will |
| giving you the freedom to dispense of it as you | | | | charge a penalty for the transaction and will return |
| please. You can entrust it in either a savings account | | | | the check to you; this is called a bouncing check. It |
| or a checking account. Your decision on which kind of | | | | affects your credibility when you apply for loans or a |
| account to open depends on how you would like | | | | credit card in the future, and in worst cases, a felony |
| your money to work for you. | | | | charge may be file against you. |
| A savings account enables you to keep money on | | | | Obviously the issues that you have to contend with |
| deposit while accumulating interest on it over time. If | | | | in choosing which account to open with varies with |
| you really want your money to grow, this is the | | | | how you plan to do away with your money. Do you |
| better type of account to go with. But you are in a | | | | want the profitability of a savings account? It lets |
| slight disadvantage when it comes to pulling out | | | | your funds grow, and you are in no danger of |
| funds, since you would have to go to a bank or an | | | | overdrawing your account. Do you want the |
| ATM (if the bank offers you this option) every time | | | | freedom and convenience of a checking account? It's |
| you withdraw cash. If you are the penny-pinching, | | | | a safe and convenient way of liquidating your funds, |
| thrifty type, this account works well for you. The | | | | but there's that danger of writing that bad check. |
| minimum balance for opening it is very reasonable, | | | | Your decision depends on your attitude towards |
| and your money multiplies as long as you sit on it. | | | | money and how you would like to use it. If you're in |
| You need to talk to your bank concerning interest | | | | a situation wherein you constantly need to release |
| rates and transaction fees, just to make sure that | | | | substantial amounts of money, then you'll need a |
| you'll know what you're getting into. Do business with | | | | checking account. If you want your money to sit |
| banks which offer the highest interest rate possible, | | | | tight for long periods of time, and you can deal with |
| while giving you as much freedom to release your | | | | cash most of the time, you would go well with a |
| funds as you would like to. | | | | savings account. There are advantages and limitations |
| On the other hand, a checking account works well | | | | to both types of accounts mentioned. It's for your |
| for you if you're a practical spender. With a checking | | | | own financial ease that you weigh and consider your |
| account, you can deal with transactions such as | | | | options before you open with any of them. |
| paying your utility bills and house mortgage with | | | | |