A checking account is very important for many aspects whether it’s for utilities and housing, gym memberships or payments for a credit card. But even though a checking account is very important, there isn’t an exact amount of money that should stay in there. Rather, it depends on each individual and their lifestyle.
Here at Westport Federal Credit Union, we offer our members a Totally Free Checking with zero hidden fees. Continue reading to get an idea of how much money you should keep in yours.
We recommend you keep one to two months’ worth of spending in your checking. The rest of your funds should go to savings accounts or retirement and investment accounts.
- Avoiding Overdrafts: By keeping enough money in your checking account, you avoid the risk of having to pay overdraft fees. At Westport Federal Credit Union, we allow our members to have debit, ACH and check transactions clear and allow their account to go negative up to $500. To have access to this you must enroll into our Courtesy Pay Program. To fill out the form visit our Main Office or click here to download the form and return it to us.
- Providing a Cushion for Pre-authorization Holds: Some places will place a hold on your debit card until a transaction is completed. Pre-authorizations can reduce your available checking account balance. Once your transaction clears, the hold is released and the funds are available to you again. However, until then, the money is tied up. Keeping your checking account well-funded allows you to comfortably agree to pre-authorization holds without fearing an empty or overdrawn account.
- Keeping Liquid Funds Available: A checking account also means access to cash is just an ATM transaction away. It definitely is helpful to know you have cash available if and when you need it.
Once you’ve determined exactly how much money you should be keeping in your checking account, look into other options for the rest of your funds. Or, if you want to open a Totally Free Checking account with us, click here. Secure your financial future with us.