Whether you are opening a checking account for the first time or moving your money into a new account, there are a variety of factors to consider. It's important to find a checking account that works with your financial needs and that gives you the freedom you are looking for. While it may seem that checking accounts are more or less the same everywhere, there can be some key differences that you need to know about. Here are three things that you need to consider when it comes to checking accounts.
Your Options
Checking accounts make it convenient and easy to deal with your money. They allow you to write checks, make purchases using a debit card, set up automatic payments, automatically deposit your paycheck, deposit and withdraw money, and much more. There are a variety of financial institutions that offer checking accounts as well. Not only are checking accounts available through traditional banks, they are also available through credit unions and online banks. Looking at your options before making your decision is key to finding the right account for your financial needs.
Types of Checking Accounts
Another thing to consider is that checking accounts aren't one size fits all. There are different types of checking accounts, and one type may work better for you than another. Free checking accounts are a popular option but are only available at 38 percent of banks. These accounts have no monthly maintenance fees or requirements for a minimum balance. If you want to make money from your money, an interest-bearing check account may be the best option. Interest rates can be anywhere from 0.01 to 5 percent with these types of checking accounts. Other types of checking accounts include joint accounts, trust accounts, premium accounts, and lifeline checking accounts.
Different Types of Fees May Apply
When it comes to checking accounts, fees may apply in certain situations. Monthly maintenance fees are common as are overdraft fees. While free checking accounts have no maintenance fees, other types of fees may apply. Over the course of a decade on average fees associated with checking accounts add up to almost $1,000. Before opening a checking account, it's essential to check to see what fees are going to be charged and what situations may lead to fees being charged.
If you are opening a checking account, there are a few things to keep in mind. First, accounts are available through various institutions, and it's important to look carefully at your options. There are also different types of checking accounts to choose from and certain ones may suit your needs better than others. Fees are also a thing to consider carefully when opening a checking account. Make sure that you read the fine print carefully in order to see what fees may be charged.
Take these tips into consideration and talk with local banks, credit unions, and other institutions like Unison Bank to find a checking account for you.
