3 Things to Look for When it Comes to Checking Accounts
Chances are that your checking account is something that you use on a daily basis. These accounts allow you to easily deposit and withdraw money and are an essential part of daily life for many. Checking accounts make paying bills and making daily purchases easy and convenient. However, it's important to note that not all checking accounts are created equal. It's important to choose wisely. Here are three things that you should look for when it comes to a new checking account.
Free Checking
Free checking accounts typically have no monthly fees or balance requirements. These accounts can offer a lot of savings over time since there are no monthly fees and are a great option for those who are getting an account for the first time. However, finding a free checking account is harder than you may think. Only 38 percent of checking accounts at larger banks are free and you may not qualify for this type of account. Shopping around at different banks and credit unions can help you find this type of checking account if that's what you are looking for. Just make sure that you read the fine print and make sure that there are no fees.
Interest Bearing Accounts
For some, checking accounts can also be a way to make some money. Interest-bearing checking accounts are similar to savings accounts but they allow you to easily deposit money and make purchases. They also allow you to make money on the account in the form of interest. Interest rates vary from 0.01 to 5 percent for these types of accounts. These accounts typically have high minimum balance requirements and are not offered by all banks. They may also have monthly maintenance fees and other conditions.
The Cost of Fees
If you are unable to find free checking, it's a good idea to look closely at monthly maintenance fees and other fees that you may have to pay. Overdraft fees and other types of fees can be pricey. Check fees average out to nearly $1,000 over the course of a decade. When choosing a checking account, it's important to calculate how much you may end up paying in these fees. Comparing multiple accounts is the best way to ensure that you find the checking account with the lowest fees.
If you are looking for a checking account, there are a few things that you should look for. Free checking accounts are a great option since they do not have monthly fees. However, they can be a challenge to find. Interest-bearing accounts are a great option if you want to make money off of your checking account. No matter what type of account you choose, it's important to shop around and read the fine print when it comes to potential fees.
