How to save money with a checking account? Evaluating your spend and taking advantage of cashback rewards are tips to save money with your checking account.
You might think of saving and spending as complete opposites. Money either comes into or out of your account. But when managed the right way, one can end up being the yin to the other’s yang. To get your saving and spending habits to complement each other, you only have to look as far as your checking account.
Richard D. Quinn, founder of personal finance blog Quinnscommentary, says the majority of Americans think they don’t have enough money to save—even when they do. “Virtually everyone can find money to save, and it’s not necessary to go through complicated budget calculations,” he says.
You can avoid the tricky number crunching and find ways to save money with your checking account by evaluating how you spend and taking advantage of features that can help you grow your savings.
What are the best ways to save while using a checking account? Try these tips to save money with your checking account to build a cash cushion:
1. Pick the right checking account
Checking accounts aren’t created equal. If you’re looking for ways to save money with your checking account and are a frequent debit card user, consider picking an account that rewards you for your purchases.
Discover Cashback Debit, for example, allows you to earn 1% cash back on up to $3,000 in qualifying debit card purchases each month.1 Maxing out your cashback earnings monthly could yield $360 in rewards annually. Deposit that cash into a high-yield savings account, and you’ve accelerated your savings just through smart spending.
If you’re all about rewards, one of the biggest tips to save money with your checking account is knowing the guidelines before you open your account.
“You need to understand your rewards program,” says Dave Rathmanner, vice president of content for LendEDU. “You need to know what the rewards are for, whether there are limits on the amount of rewards you can earn and how those rewards are earned.”
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