How can people manage their money, and pay bills without using a checking account?

Originally answered Sep 8, 2019

It’s possible to do so, but there are good reasons to use a checking account:

1. Receive paychecks and other sources of income via direct deposit.
2. Automatically pay bills.
3. Easily transfer funds electronically to and from others.
4. Use electronic bill paying services.
5. Use a debit card to make purchases.
6. Use ATMs all over the world.
7. Receive interest on the amount in the checking account.
8. Receive preferred rewards benefits such as no ATM fees and higher credit card rebates.
9. Receive monthly statements.
10. Take advantage of services such as stop payment orders , automatic overdraft protection, and low balance alerts.

One alternative to a traditional bank checking account is to use a cash management account with an investment company such as Fidelity.