(Newswire.net — May 8, 2020) — The coronavirus pandemic has left countless citizens across the globe in a state of financial uncertainty. It’s no wonder people are checking their mailboxes daily for the $1200 stimulus checks the Federal government is promising and wondering if the government will do more. But what are you going to do with your check when it arrives? We’re not talking about paying your utility bills or making a grocery run. Rather, we’re asking, how are you going to access the money you receive?
A Little Bit of Germaphobia May Not be a Bad Thing
Many people will receive their stimulus checks via direct deposit and draw on the money they receive electronically. Call it a primal financial urge, but others may feel the need to have cash on hand during the crisis. They’ll withdraw at least some of the money they receive in good old reliable greenbacks. But that decision raises a health concern as serious as the coronavirus itself. Preliminary research indicates that the coronavirus can live on paper for up to 5 days. Using an ATM or drive-through bank teller station to withdraw cash doesn’t eliminate the risk that someone who has been infected with the virus has handled, or worse, sneezed on the bills you’re about to put in your wallet. Cash—which used to be king—has become the potential source of a dangerous infection.
If nothing else, the coronavirus pandemic has caused us to rethink both the implications of social contact and our hygiene habits. Worldwide use of electronic payment methods has surged in response to the heightened sense of vulnerability the coronavirus has triggered in us. Many retailers are adopting new electronic payment methods such as ApplePay and GooglePay which don’t require you to swipe a card to make a purchase. New routines, especially when they’re more convenient, tend to become habits. Very few experts are predicting that cash will be resurrected as the preferred way to pay. Interestingly, cryptocurrency exchanges are working to bridge the gap between virtual and fiat currency. Soon you may be able to pay for everyday items using your crypto account.
Protecting Yourself from Undue Risk
Remember when your mother used to tell you, “Don’t touch that! You don’t know where it’s been? She was on to something then that’s still valid now. The less you handle cash, the lower your risk of catching coronavirus from an unwitting bank teller or pizza delivery guy will be. Using your debit card or phone to pay for any purchase you make, including the can of Coke you pick up at the convenience store, is a smart health habit to develop. To keep yourself safer still, use gloves when making a keypad payment. Limit your exposure by shopping at fewer places and combining purchases as often as you can. And if you’re accustomed to paying utility bills at a retail location, stop that!
From a financial perspective, your best friend during the coronavirus may well turn out to be your checking account. So let’s have a look at what makes a good one. Times have changed and considerations around your banking products may have changed along with them.
Local Branches are Less Important
The best checking account for you to open right now might not be with the bank around the corner. For one thing, you’re leaving the house pretty rarely now anyway. So try to find a bank that offers you the most—and most convenient—electronic banking options. Online bill-pay services, through both your PC and your mobile phone, are critically important right now. But coronavirus aside, they’ve been the safer way to go for a long time. Online payments don’t get lost or delayed in the mail as sometimes checks do. They’re often credited more quickly than payments made by mail, too. That can protect you from late payment charges. Late fees associated with credit cards and retail accounts can be outrageously high. And right now, when you may be living closer to the bone, you may be making payments under the wire in an effort to manage your cash flow.
Save on Fees Wherever you Can
There are plenty of free checking account offers out there. You may have even responded to one when you opened your account. But how free is free? Some banks require you to maintain a minimum balance to avoid paying fees. Others restrict you to in-network ATMs and will charge you for out-of-network ATM transactions. Most people don’t intend to bounce a check, but, on the other hand, most people do at least once in their lives. Be on the alert for high overdraft fees as you compare the benefits of accounts because they do vary. While you might be tempted to opt-in to overdraft protection, that can really backfire. You may not be charged a fee by the company you’re trying to pay when you overdraw your account, but your bank can still impose its own fees. You can accidentally rack up quite an overdraft obligation if you make several ATM payments without knowing you are overdrawn.
Maybe Earn a Little Bit, Too
Some checking accounts offer sign-on bonuses when you meet a minimum deposit threshold or sign up for direct deposit. And while the interest rates offered by checking accounts may seem negligible, some banks do offer better rates than others. Credit unions, in particular, tend to offer higher interest rates on checking than traditional banks. In fact, credit unions can be a great resource for low-cost banking products. Joining one might not be a bad idea, right now. From buying a home while mortgage rates are at record lows to taking out a low-interest personal loan to see you through a period of unemployment, it’s never a bad time to take advantage of a great financial opportunity. Electronically, of course.
Author Bio
Susan Doktor is a journalist and business strategist who hails from New York City. She covers a wide range of topics ranging from finance, technology, and government affairs to fitness, food, and wine.