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The Benefits of Keeping Money in Checking and Savings Accounts

Despite the growth of fintechs and neobanks, traditional checking and savings accounts remain the most popular banking options.

According to a survey by GOBankingRates, 1,000 adults are more likely to keep their money in these accounts than in any other type of account. And why not? Money in the bank is FDIC-insured, safe, and guaranteed by the United States government.

Checking and savings deposits also come with the bank’s fraud protection and data-security defenses.

Account holders get debit cards, checks, access to customer service, mobile check deposits, and instant internal transfers between accounts. But even with these standard savings and checking accounts, there are still many overlooked benefits that people should know about.

Cash-Back Rewards Are Not Just for Credit Cards

Cash-back rewards are often associated with credit cards, but some banks offer similar rewards to non-credit customers. Debit card purchases or reaching certain spending thresholds can earn cash-back rewards.

For example, Discover Cashback Debit and Axos Bank offer no-fee checking accounts that function like standard checking accounts while offering cash-back rewards of 1% on up to $3,000 in purchases per month.

Getting Paid Early with Direct Deposit

Direct deposit has become a widely accepted method for receiving paychecks. Although Chime brought the concept of getting paid early with direct deposit into the public consciousness, Chime is not an FDIC-insured financial institution. However, traditional banks have caught on and are offering this feature too.

At least 30 institutions get paychecks to their direct-deposit customers up to two days early, including Ally, Axos, Capital One, Fifth Third, Navy Federal, and Regions Bank.

It is a departure from banks’ long-standing tradition of holding direct deposits as long as possible to earn interest before handing them off to their owners.

ATMs within Your Network

The rule for withdrawing money from automated teller machines (ATMs) has always been that you can withdraw your money for free unless you use an out-of-network machine. In this case, the ATM owner would charge you a fee, even if your bank did not. But with the right account, those fees can be eliminated, regardless of the ATM owner.

Even with the rise of fintechs and neobanks, checking and savings accounts remain the most popular banking options. These accounts offer FDIC-insured safety, fraud protection, and data-security defenses, as well as many benefits that people overlook.

Cash-back rewards are not just for credit cards, and some banks offer early paydays through direct deposit. Additionally, some accounts can eliminate ATM fees, no matter who owns the machine.

As Tim Doman, the CEO of TopMobileBanks, says, it is essential to pay attention to the lesser-known perks of these accounts, as they can help you achieve your financial goals.

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