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 other accounts. And why not? The money in the bank is FDIC-insured, safe and guaranteed by the U.S. government.
Current accounts and savings deposits are also protected by the bank’s fraud protection and data protection precautions.
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.
Cashback rewards are not only available for credit cards
Cashback rewards are often associated with credit cards, but some banks offer similar rewards to customers without a credit card. Cashback rewards may be available for debit card purchases or reaching certain spending limits.
For example, Discover Cashback Debit and Axos Bank offer free checking accounts that function like regular checking accounts but offer 1% cash back rewards on purchases up to $3,000 per month.
Early payment by direct bank transfer
Direct deposits have become a widely accepted method of receiving paychecks. Although Chime brought the concept of early payment via direct deposit into the public consciousness, Chime is not an FDIC-insured financial institution. However, traditional banks have jumped on the bandwagon and offer this feature as well.
At least 30 institutions, including Ally, Axos, Capital One, Fifth Third, Navy Federal and Regions Bank, are delivering paychecks to direct deposit customers up to two days early.
This represents a departure from banks’ long-standing tradition of holding direct deposits for as long as possible to earn interest before passing it on to their owners.
ATMs in your network
The rule for withdrawing money from ATMs has always been that you can withdraw your money for free unless you use an out-of-network machine, in which case the owner of the ATM would charge you a fee even if your bank doesn’t. However, with the right account, these fees can be avoided regardless of the owner of the ATM.
Despite the rise of fintechs and neobanks, checking and savings accounts remain the most popular banking options. These accounts offer FDIC-insured security, fraud protection, and privacy, as well as many benefits that many overlook.
Cash back rewards aren’t just available for credit cards, and some banks offer early withdrawals via direct deposit. Additionally, some accounts may waive ATM fees, regardless of who owns the machine.
According to Tim Doman, CEO of TopMobileBanks, it’s important to pay attention to the lesser-known benefits of these accounts because they can help you achieve your financial goals.