All about apps? Great, but there are reasons millennials still need a checking account

Millennials are glued to their mobile devices for more than just scrolling through social media and snapping selfies. Many millennials use apps and mobile tools to pay their bills and mobile payment services to send and receive money.

“Aside from the convenience of sending money with the tap of a finger, virtual wallets are free to use and offer quick transfers,” says Jennifer McDermott, consumer advocate for a personal finance site.

Virtual wallets—also called digital wallets—offer a way to store different payment information and passwords from multiple accounts in one place.

They even “allow millennials to charge friends in real time, making splitting the costs of meals, gifts and housing easier than ever,” McDermott adds.

Since financial apps and tools are all the rage, do millennials need a checking account? The answer is still a resounding yes.

While there are financial apps to help you manage your money, there are good reasons millennials need a checking account as part of their financial strategy. The challenge is figuring out what millennials want from a checking account that apps simply can’t provide.

What checking accounts do that apps can’t

Checking accounts offer some benefits that digital wallets lack, McDermott says. One reason millennials need a checking account is that you can deposit checks and pay bills from your account. Digital wallets are not necessarily designed for this—they are simply for making purchases or sending money, McDermott adds. With Capital One, it’s just as fast to deposit a check from your phone as it is at an ATM, and you don’t even have to leave the house.¹

Having a checking account also allows you to utilize direct deposit and skip the hassle of manually depositing each paycheck from your employer. You can get paid sooner with the early paycheck feature from Capital One.² If your bank is insured by the Federal Deposit Insurance Corporation (FDIC), your money is safeguarded, too—if your bank fails, your deposits are insured up to up to $250,000 per depositor, per account ownership category. And while often overlooked, you can even use your checking account as a budgeting tool.

“Checking accounts help you track your spending by reporting debit transactions in real time,” McDermott says. “With a digital wallet, it can be easy to get in the habit of spending money without keeping track of your [checking] account balance. For someone who’s just learning how to take care of their money, that can be an unfortunate habit to fall into.”

If you’re trying to find the right checking account for your lifestyle, a simple checking account can be just what’s needed when you’re in the early stages of financial management, says Mark A. Ranta, senior manager of payments technology at a professional services platform. Teaching your kids to manage money is a lot easier when you don’t have to worry about monthly fees or minimums eating into their progress.

Traditional checking accounts have evolved to meet the need for easy access through online and mobile banking. “With today’s financial tools, you can see where your money is going and when it’s coming in, all in real time from your mobile device,” Ranta says. Whether you’re depositing a check or checking your balance, Capital One’s top-rated mobile app is built to be fast and secure.^1,3

Choosing a checking account

How millennials choose their checking account ties in to what they want from a checking account. Millennials often go online with their finances top-of-mind to:

• View statements and transactions
• Set up automated, recurring payments
• Transfer money electronically to friends and family
• Analyze your spending

A good checking account should allow you to do all of these things from your computer or mobile device.

While there might be some commonalities in what millennials want from a checking account, you also need to consider which features are most important to you personally. Easy access to no-fee ATMs may be a priority for millennials who like to have cash in their wallet at all times, for example. Just look for the Capital One, MoneyPass or Allpoint logo to enjoy fee-free withdrawals at over 70,000 locations.⁴ For others, it might be avoiding checking account fees.

“There are so many flavors and options out there that it’s essential to start with asking some simple questions about your individual preferences,” Ranta says.

Making checking accounts and apps work together

While there are reasons millennials need a checking account, it doesn’t mean they have to give up on the idea of using money management apps altogether.

“Using both a checking account and a financial app offers the security and digital benefits you seek when managing your finances,” McDermott says. “By hooking up a checking account to digital payment and budgeting apps, you can easily track your spending and ensure your money is secure, while enjoying the convenience of sending money online and splitting purchases.”

How millennials choose their checking account comes down to personal preference. At the end of the day, the most important thing to consider may be how easily you can coordinate your choice of checking account with your favorite money apps to manage your financial life on the go.

Don’t spend your afternoon at a bank branch. Capital One’s streamlined process lets you open an account from your couch in about 5 minutes.

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The information provided herein is for informational purposes only and is not intended to be construed as professional advice. Nothing contained in this article shall give rise to, or be construed to give rise to, any obligation or liability whatsoever on the part of Discover, a division of Capital One, N.A., or its affiliates.